Pension Plans May Be A Thing of the Past

Senior couple paying bills at home

MELBOURNE, AUSTRALIA — Company pensions may soon be a thing of the past.

A new report from consulting firm Mercer shows that almost two-thirds of pension funds are considering dropping benefits to new workers in the next five years.

U.S. plans are in their worst shape in two years, according to the report.

“Significant ageing of the population in many countries is a fact of life. Yet this is not the only pressure point on our pension systems,” Dr. David Knox a Senior Partner at Mercer said in the report.

He sites “gig employment” and the lack of easy access to pension plans among other things for the downturn.

Some companies, like General Electric, have offered buyout plans or frozen benefits.

“Pension funds are a key source of retirement income and play a significant role in financial markets, prompting a growing need for accurate information and comparisons between countries’ developments and experiences,” Martin Pakula, Minister for Jobs, Innovation, and Trade in Melbourne said in the report.

To see the full report LINK

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