UK defined benefit (DB) pension schemes are considering a growing range of endgame options, with 85 per cent of pension schemes having decided on a route, the Aon Endgame Survey 2026 has found.

The survey of over 350 schemes found the remaining 15 per cent of respondents said they were either undecided on approach or preferred to remain flexible.

Of the majority who have decided on a route, almost three quarters (74 per cent) planned to move to an insurance solution once possible, including some schemes that needed to run on for a short period first, while almost a quarter (24 per cent) intended to run on beyond what was necessary for risk settlement readiness.

The survey found there was also a difference between scheme size, with 84 per cent of smaller schemes (sub-£500m) intending to insure at the earliest opportunity, 14 per cent looking to run on further, and 2 per cent targeting a superfund transaction.

Larger schemes (over £500m) were more split, with 54 per cent intending to insure at the earliest opportunity and 46 per cent seeking to run on for the long term or for a shorter time.

These findings follow The Pensions Regulator’s (TPR) guidance in June 2025 on new models and options for DB schemes, designed to help trustees consider the range of endgame models and options available.

Earlier in May, TPR also published its latest Annual Funding Statement, which confirmed that around 90 per cent of schemes were now in surplus.

TPR said it expected most DB schemes to continue shifting their focus from deficit recovery to endgame planning.

Aon partner in the UK Endgame Strategy team, James Patten, explained that compared with last year’s survey, more endgame decisions have now been made. Only 15 per cent of respondents described themselves as “undecided or deliberately staying flexible”, down from 23 per cent 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,” he continued.

“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.”

The survey revealed the main endgame choices were buyout and run-on, with only 2 per cent of schemes targeting a superfund transaction, less than 1 per cent targeting a pension captive solution, and no respondents actively considering a sponsor succession transaction with an asset manager, similar to the Aberdeen/Stagecoach deal.

Patten said the decision of sub-£500m schemes to insure at the earliest opportunity was “possibly supported by the keen insurer pricing seen over the last 12 months,” while for schemes above £500m, there was “a much finer balance” between insuring at the earliest opportunity and running on beyond this.

“Schemes moving into surplus has inevitably raised new and developing issues,” he said.

He explained that after excluding respondents without a surplus, Aon found that 28 per cent of schemes had some form of agreement on surplus or a formal surplus policy. A further 31 per cent intended to consider a surplus policy this year.

“Not doing so could lead to deferring returning capital to sponsors in a difficult economic environment,” he said, “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,” he concluded.

This article originally appeared in our sister publication Pensions Age.

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