One in six UK firms says its pension plan represents a great financial risk to the organisation

One in six firms believes its pension plan poses a great financial risk to the organisation, a global study has revealed.

More than half (56%) of the 312 global companies surveyed by Mercer Human Resource Consulting said their pension plan represents at least a moderate financial risk.

Of those organisations based in the UK, 29% believe the risk is serious. By contrast, just 9% of US companies consider themselves to be at great risk. 

Of the other countries covered by the survey, including Canada, Australia and New Zealand, on average 16% think their pension plan poses a great risk.

Tim Keogh, Mercer worldwide partner in the UK, said: “Over the past few years, the grip of pension plan legislation has tightened around UK companies and now some are really feeling the squeeze.

“With the introduction of Pension Protection Fund levies  and more stringent plan funding rules, it’s not surprising more UK firms consider themselves to be at substantial risk.”