The UK defined benefit (DB) pensions market has seen a huge amount of change in the last 12 months, shaped by a confluence of regulatory and market developments
The Pensions Regulator's 2025 Annual Funding Statement marked a pivotal shift – indicating that it anticipates most schemes will transition their focus from deficit recovery to their endgame strategies. In May 2025, the Government responded to the Options for DB Schemes consultation, signalling significant legislative reforms, including greater flexibility in the use of DB surplus. These changes are poised to offer new opportunities for schemes and sponsors alike. Meanwhile, the bulk annuity market has expanded rapidly, with four new insurers entering the space since late 2023. This increased competition is reshaping the transaction landscape, offering schemes more choice and potentially better outcomes for members.
In June, the Pensions Regulator issued further guidance outlining considerations for trustees and employers regarding endgame options, emphasising collaboration, the importance of setting objectives, and evaluating the most suitable endgames based on those objectives and the specific circumstances of the scheme.
To get the latest understanding of the long-term strategies of UK DB schemes, Aon conducted its 2025 DB Endgame Survey. The findings, based on responses from over 200 schemes, reveal that where a decision has been reached, insurance-led solutions are particularly prevalent for sub £500 million schemes, though a growing proportion are exploring run-on strategies, either for a period of time or indefinitely, with this option now prevalent amongst schemes over £1 billion in size.
The full report offers valuable insights into how schemes are navigating this new era of endgame planning. Complete the form below to instantly access the survey.
