Question

What is the demographic challenge that companies with pension benefits are likely to face?

a.

Employees may not want to retire

b.

Financial burdens may increase due to increased life expectancy

c.

Employees may not be interested in pension benefits

d.

Companies may have to reduce pension benefits

Posted under The Future The Challenges IC90 Human Resource Management

Answer: (b).Financial burdens may increase due to increased life expectancy Explanation:Due to general improvement in health care systems and better lifestyles, people are living longer than in the past. Companies, which have provided pension benefits, will find their financial burdens increasing more than what may have been expected and provided for.

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