Watson Wyatt, the pensions, benefits and investment consultancy, is to further cut back on the cost of its own pension by moving its main UK fund from a final salary to a career average basis. Like many of he UK schemes it advises, the consultancy has already closed its defined benefit fund to new members.

The latest changes will affect existing members, however, meaning that from now on their future contributions will earn them a smaller pension. The scheme's retirement age has also been raised from 60 to 65.