DB pensions priorities

Pensions & benefits Scheme actuary and trustee actuarial services Endgame strategy and journey planning DB pensions Strategic journey planning Risk

This annual report is built around the results of our fifth annual survey of the DB pension scheme market and provides insights across a whole range of areas from DB strategy and endgame planning to data projects and cyber risk.

Digital abstract image depicting different points connecting

Key insights from this year’s report

Buy-out funding levels have continued to improve

43%

of LCP schemes now fully funded on a buy-out basis – up from 30% in our 2024 analysis
Cyber risk remains the biggest worry of our survey respondents

61%

but schemes now consider themselves more prepared, with 61% of schemes now rating preparedness 7 or higher out of 10 – a notable rise from 38% last year
More schemes are considering run-on

>45%

are considering run-on, at least in the short term. A continuum of endgames is emerging, with schemes acknowledging that an insurance transaction as soon as it becomes affordable is not the only option

Turning intent into action: results of our 2025 survey of DB pension schemes

Over the past year, we’ve seen a noticeable shift in the way schemes are approaching their long-term strategies. With stronger funding positions and a wave of regulatory developments, many are taking the opportunity to revisit earlier decisions. It is now about turning strategic intent into meaningful action.

This year’s report recognises the wide spectrum of endgame strategies now being considered. While insurance remains a key destination for many, there is growing interest in alternative paths such as run-on — especially as trustees weigh the implications of surplus reform and new regulatory guidance.

There’s also encouraging momentum in areas like DEI, GMP equalisation and climate change, though there remains more to be done in each of these areas. In addition, many schemes still report barriers — particularly around data and benefit complexity — that need to be overcome to fully realise their goals.

As with previous years, we draw on insights from our annual DB pensions survey. Thank you to everyone who took part — the first two hundred responses prompted a £5 donation to The British Red Cross. We hope you find the findings thought-provoking and practically useful as you plan your next steps.

Explore our report

Read now

We see a huge amount of positive intent in this year’s survey responses – it is now about turning that into effective action. On the back of a flurry of regulatory news, schemes should now have the various tools to enable them to make, and begin to implement, important strategic decisions – whether that’s focussed on endgame planning, the member experience or tackling systemic risks.

Mary Spencer Partner and Lead Author

Read the previous versions of our DB pensions survey report

2024: Taking control of your journey

Read now

2023: Tale of two journeys

Read now

2022: Shifting gears

Read now

Your questions answered

: Systemic risks are those that cannot be diversified away as they do not just affect one company or holding, but instead can have a broader impact on the wider economy.

: Cyber risk can be broadly defined as the risk of loss, disruption, or damage to a scheme, or its members associated with using information technology. Risks can arise not only from the technology itself but also from the people using it and the processes supporting it. It includes risks to information (data security) as well as assets, and both internal risks (for example, from staff) and external risks (such as hacking). Source: TPR

: A pension buy-out involves a pension scheme assigning an insurance policy into the names of the members or other beneficiaries of the scheme. A buy-in is a necessary first step before a buy-out. The buy-out transfers legal responsibility for paying the members from the pension scheme to the insurer. Pensions are then paid directly to members by the insurer rather than by the scheme, and the buy-in ceases to be an asset of the scheme. This process is used to transfer all or part of the liabilities of a scheme to an insurer and is often associated with the winding up of the scheme. It is not normally necessary to make any additional payment to the insurer to move to buy-out.

: DB pension scheme run-on is where you continue to operate a pension scheme beyond the funding level required to fully insure and buy-out pension benefits.