More than half(56%)of global companies believe their pension plan represents at least a moderate financial risk to their organization, according to a new study.
The Mercer Human Resource Consulting survey of more than 300 companies also found that 16% believe their plan poses a great risk.
Concern is the greatest in the United Kingdom where 29% think the risk is serious, closely followed by 24% in continental Europe.
In other countries, including Canada, Australia and New Zealand, about 16% believe their plan poses a great risk.
Companies based in the United States are less concerned. Just 9% think their plan represents a serious risk to their firm.
“Globally, companies are waking up to the fact they need to manage pension plan funding in the overall context of their corporate finances, rather than as a separate entity,” says Bob Moreen, worldwide partner at Mercer in the U.S. “Letting a plan deficit develop can create a serious dent in profits and affect business growth, so employers can’t afford to disregard the risks.”
In total, 312 organizations took part in the survey. Of these, 167 are based in the U.S., 52 in continental Europe, 44 in the U.K. and 29 in Canada, while the rest are split between Asia, Latin America, Australia and New Zealand.
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