UK pension schemes are increasingly focused on their endgame planning, with the final destination options for most being either self-sufficiency, consolidation or buyout.
Aon's 2021 Global Pension Risk Survey revealed, for the first time, that buyout has become the preferred long-term goal for UK pension schemes. This has largely been driven by buyout affordability for many schemes improving significantly in the past few years. Key contributing factors have been investment performance, sponsor funding, member options projects and the maturing of closed schemes.
The survey also revealed that timescales to buyout are reducing, therefore, trustees and sponsors should act now to ensure they are fully prepared to take their next step and avoid the regret risk of missed opportunities by delaying action.
Choosing the best strategy can prove challenging, but here you will find latest insights, with supporting resources signposted to help you identify where your scheme is on its endgame journey, and practical advice on the next steps that you should consider.
This is a hub with content from Aon's Risk Settlement Team.