DB pensions priorities

The main priorities for UK defined benefit (DB) pension schemes in 2026 are journey planning and endgame strategy, including insurance de-risking transactions, run-on strategies and surplus management. Trustees and sponsors are also focusing on cyber security, governance, and the new funding regime as schemes move from strategic planning towards execution.

55% of DB pension schemes are now fully buy-out funded, up from 43% in 2025. This improvement reflects highly competitive insurance pricing as well as strong and resilient funding levels. However, many schemes are weighing up their options, including whether to run-on for a period after full insurance first becomes affordable, as well as explore whether longer-term run-on could lead to improved outcomes.

69% of DB pension schemes are actively considering how to use surplus, and interest in long-term run-on continues. Almost 50% of schemes surveyed between £500m and £1bn with an agreed endgame strategy are now planning for long-term run-on, showing that run-on is no longer seen as an option only for the very largest schemes.

More than 70% of schemes still report barriers to progressing towards their chosen endgame. The biggest challenges include data quality, benefit and legal issues, illiquid assets, company accounting implications, and differing stakeholder views. Differences in opinion between trustees and sponsors are becoming more prominent than in previous years.

Cyber security threats and AI-related risks are the leading concerns for DB pension schemes in 2026. Around three-quarters of respondents ranked these among their top risks. Wider concerns include geopolitical instability and regulatory risk, underlining the need for strong governance, resilience planning, and regular risk assessment.