More DB schemes have set an endgame target, but there are a wider range of options now being considered, according to the latest research from Aon.
Its latest Endgame Survey, conducted among 350 schemes in recent months, show that 85 per cent are targeting a specific endgame, with buyout and run-on being the key choices.
In total just 15 per cent remain undecided, down from 23 per cent in the same survey last year.
Of those who are have set their endgame strategy, insurance solutions were the most popular option, and the endgame target of three out of four (74 per cent) of these schemes. Aon says this includes some schemes that that need to run on for a short period in order to be settlement ready.
In contrast, 24 per cent of schemes intend to run on instead.
However, Aon found just 2 per cent of schemes are targeting superfund transaction, and less than 1 per cent are planning a pension captive solution. Aon said it did not find any schemes actively considering a sponsor succession transaction with an asset manager, similar to recent Aberdeen and Stagecoach deal.
Overall, 15 per cent of all DB schemes surveyed said they remain “undecided” on their endgame options, or are deliberately choosing to take a more flexible approach at present.
The survey found that more than half (57 per cent) of all these DB schemes surveyed are now fully funded on a buyout basis.
The survey also shows that larger schemes were more likely to consider running on for the longer term. Among schemes with more than £500m under management, 54 per cent were seeking to insure at the earliest opportunity, with 46 per cent seeking to run on, either for the long-term or for a shorter period of time.
But in smaller schemes (of less than £500m) 84 per cent intend to insure at the earliest opportunity. Here 14 per cent were seeking to run on, and a further 2 per cent were targeting a superfund transaction.
Aon partner in the UK endgame strategy team James Patten says: “After The Pension Regulator’s June 2025 endgame guidance and its recent Annual Funding Statement that encouraged schemes to focus on endgame planning, this survey gives real insight into current market practice on endgame decisions.
“When comparing this survey with last year’s, we see more endgame decisions made, with only 15 percent of respondents describing themselves as ‘undecided or deliberately staying flexible’ compared with 23 percent in 2025.
However, with a growing range of endgame options, improvements in insurer pricing, new surplus flexibilities, and an uncertain geopolitical and economic environment, we expect to continue seeing schemes revisiting previous endgame decisions until they are fully committed to delivery.
“Whatever their choice, it’s vital that they have reviewed the complete range of options and are fully aligned on their objectives – or they could face issues in the future.”
Patten adds: “Buyout and run-on remain the dominant endgame options in the market. The £1bn+ schemes that are running-on are predominantly doing so actively, with a view towards the generation of surplus.
“However, our survey suggests a split in market practice between sub-£500 million schemes and those that are larger. Among sub-£500 million schemes, insuring at the earliest opportunity is by far the most popular option – possibly supported by the keen insurer pricing seen over the last 12 months.
“Schemes moving into surplus has inevitably raised new and developing issues. After excluding respondents without a surplus – and who therefore had chosen to have no surplus policy – we found that 28 percent of schemes had some form of agreement on surplus or a formal surplus policy.
“ A further 31 percent intend to consider a surplus policy this year. Not doing so could lead to deferring returning capital to sponsors in a difficult economic environment, or getting to a situation where older generations of members regard themselves as losing out on the opportunities that accessing surplus might offer. It’s clear that it can be beneficial to put a surplus policy in place before a surplus emerges.”