DB schemes to become extinct soon – Mercer poll

GLOBAL – Defined benefit pension schemes will soon be as extinct as dinosaurs, according to an online vote on consulting firm Mercer’s web site.

“Defined benefit pension plans are facing a crisis,” Mercer asked earlier this month. “What does the future hold?”

Fifty-three percent of respondents to the poll agreed with the proposition that “Defined benefit pensions will soon be as extinct as the dinosaurs.”

Just 13% predicted a comeback for DB and that current challenges are “just a short-term blip”.

The middle option - that “many current plans will continue but we won’t see any new ones” - gained 34% of votes.

Mercer Human Resource Consulting regularly runs online polls on its site, covering topics such as socially responsible investing, market trends and other matters.

Another poll found that 63% would increase their focus on environmental, social and governance factors over the next two years. Thirty percent said there would be no change and 7% would decrease their focus.