In the pension plan battle, defined benefit plans still remain the most popular in Europe although there is growing evidence that more companies are adopting a hybrid approach, according to a survey by pension adviser Watson Wyatt. Hybrid plans combine defined benefit and defined contribution plans.

Of the 740 different pension arrangements across 17 different European countries surveyed, 58 per cent of European-headquartered companies prefer defined benefit plans. This compared to 46 per cent for their US counterparts. Hybrid plans are used by one-third of the British companies surveyed, while Ireland, Austria, Belgium and Switzerland also have a relatively high proportion of hybrid design plans.