LCP say that 2026 is set to be a “pivotal year” for superfund market

LCP believe a number of key factors means that 2026 will prove to be a turning point for the superfund market.

This includes greater regulatory clarity, increased competition, with 3 new providers expected to come to market, and a widening range of schemes able to present a rationale for a superfund transfer which is acceptable to TPR.

LCP highlight that recent public statements from TPR confirm that they expect three providers to submit for TPR assessment by the end of the year. This means the superfund provider landscape is expected to widen from Clara Pensions as the sole provider to a market of 4 superfund providers.

New entrants are likely to come to market with alternative models to Clara’s bridge to buyout. For example TPT have publicly confirmed they are in TPR assessment with a run-on superfund which will share surplus with members. And we would expect the other providers in assessment to be looking at run on models and value-sharing mechanisms.
This expansion of the provider landscape will create a more competitive market which may result in improvements in pricing and we expect to see superfund providers looking to differentiate themselves on non-price factors such as member experience.

The forthcoming superfund regulations may also result in capital requirements which are more efficient for the superfund providers which would result in keener superfund pricing.

Developments arising from the Pension Schemes Act - including the expected relaxation of the gateway tests and interaction with surplus regulations - could also significantly widen the range of schemes able to construct a viable case for superfund transfer.

Laura Amin, Partner and Head of DB Consolidation at LCP, commented: “We are seeing several supply side and demand side factors come together for 2026 to be a pivotal year for the superfund market.

"On the supply side, we understand that TPR has confirmed that it expects three superfund providers to submit for assessment and so we may have four providers by the end of the year, creating a more competitive environment and expanding choice for sponsors and trustee. 

"On the demand side, the expected relaxation of the gateway tests and interaction with surplus regulations will widen the range of schemes able to construct a viable case for superfund transfer.

"It will be fascinating to see how further innovation in the superfund and wider endgame market – for example in value share propositions - may extend the range of endgame options available for sponsors and trustees and deliver improved member outcomes.”