More than half of DB schemes now offer additional retirement support and flexibility on income options accordiong to Aon’s latest market insight report.
In addition, it found that 30 per cent of schemes offer pension increase exchange and bridging pension options at retirement. It said there was strong member uptake of these options, with 36 per cent of eligible members opting for the first option, when made avaialbe, and 55 per cent of eligible members taking the bridging option when offered.
These findings were in Aon’s annual Member Options and Support report, conducted among 250 DB schemes and 10 bulk annuity insurers.
It also found hat 26 per cent of DB schemes now make independent financial adviser (IFA) support available to members at retirement, with more planning to offer it in 2026.
Aon partner Tom Williams says: “For many pension scheme members, their decisions at retirement are the most financially significant they will make in their life, so it’s encouraging to see that trustees and sponsors are offering them increasing support.
“Since 2019, we have observed an increasing trend of pension schemes adding additional retirement information and support, from personalised transfer value figures in retirement packs, to IFA support and access to educational tools.
“In both 2024 and 2025 over half of the schemes surveyed went beyond providing the statutory minimums, with even more planning to offer support in the near future. All this helps members make the right decisions for their personal circumstances at retirement.”
He adds: “With members transferring out of schemes at an historic low, in-scheme options are providing much needed opportunities for them to reshape their benefits within the pension scheme. It’s clear from the number that are choosing these options that the flexibilities are really valued. It’s also not surprising that more choice is often accompanied by more support being made available to members to help them with their decisions.
“With the backdrop of cost-of-living issues and an increasing State Pension Age, BPOs in particular are providing a way for members to be able to afford to retire before State Pension Age, as well as giving them the chance to take a greater amount of their benefit as tax-free cash.”
