Proposed European Commission pension changes would be a "disaster" for British business, forcing billions of pounds of extra costs and leading to thousands of job losses, a new report has claimed.
The Confederation of British Industry (CBI) said long-term growth would also be cut by a potential 2.5% if the plans to require pension schemes run by individual employers to operate like insurance firms go through.
A study for the business group by economic consultants Oxford Economics claimed that extra costs could total £350 billion and 180,000 jobs could be lost.
CBI chief policy director Katja Hall said: "Imposing £350 billion more costs on business would be a disaster for the economy and for pension saving.
"The long-term economic outlook is so fragile and uncertain that it is crazy to entertain proposals which would cost jobs and cut so deeply into our long-term growth and competitiveness.
"Workplace pensions are vital to ensuring people have enough money for their retirement when life expectancy is rising - so future generations are not hit with huge bills or driven into poverty.
"The European Commission's wrong-headed proposal will do nothing to help us cope with the burden of retirement.
"We have a tough regulatory system in this country, so these changes are completely unnecessary.
"It's alarming the commission is still turning a deaf ear to calls from businesses, trade unions and pension funds to bin these proposals.