Explore answers to commonly asked questions about pensions.
Curious? Your questions answered
UK pensioner death rates in 2026 are broadly back in line with the pre-pandemic trend, after several years of elevated rates. Our annual survey suggests that (re)insurers’ longevity assumptions, which fell by around 3% between 2019 and 2024, held steady at the 2025 year-end. We would not be surprised if the next move is upward rather than downward.
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.
Yes. CDC and DC can be complementary, offering different income patterns in retirement to suit diverse saver profiles and needs.
Advances in AI will bring about a fundamental change to how administration services are delivered, improving member communications and internal processing. Administrators are already using it to automate key workflows and tasks like logging post and assigning work. Those administrators who are on the front foot with AI will also be those most aware of the potential risks this new technology presents, and should make sure that these are appropriately managed.
Under the proposed reforms, surpluses in DB pension schemes could be:
Returned to sponsoring employers for business investment
Used to enhance member benefits, such as discretionary pension increases
Allocated to support Defined Contribution (DC) pension plans
These uses would be subject to safeguards to ensure the security of members' benefits.
The Pensions Administration Standards Association (PASA) Accreditation programme is an independent assessment of compliance with their standards, which cover a broad range of administration activities. You can check if your administrator has been accredited at the PASA website.
When choosing a pensions administrator, consider whether they regularly seek feedback from members, whether they use technology to enhance members’ experiences, whether they proactively look after members’ data, and what accreditations they have been awarded.
Recruiting and retaining administrators is a known challenge, particularly in DB administration which is often viewed by potential candidates as a declining industry. Third party administrators need to highlight the wide range of skills required to be an administrator – from calculation skills and soft skills that help support members, to specialist knowledge on areas such as derisking – all transferrable skills that can persuade new joiners to commit to a career in administration and beyond.
For sponsors, buying-out a closed defined benefit pension scheme can remove balance sheet risks and completing the wind-up process will remove the ongoing expenses of running the scheme.
Key areas to consider include:
Solvency metrics: How does the insurer’s capital buffer compare to industry benchmarks?
Risk exposure: What are the key risks in their investment and reinsurance strategies?
Ownership model: Does their structure support long-term financial resilience?
As the industry recognises it’s a case of ‘when not if’ a cyber incident targets their scheme, trustees need to have practised their incident response so they are able to respond more quickly. Training, assessing risk and making sure controls are in place are key actions for trustees to take. Find out more about how trustees can prepare here.
Communicating with members in ways they can easily understand is a key part of good administration, especially where complexity can cause confusion or disengagement.
