2025 is set to be an important time for UK pension schemes to focus on their endgame strategy, be it setting for the first time, or reviewing prior decisions in reflection of regulatory and market changes.
On 29 May 2025, the UK Government announced legislative changes to give greater powers to trustees and sponsors of DB schemes to make informed decisions regarding accessing and distributing surplus within their schemes without needing to wind-up. The bulk annuity market has also seen change too, with four new insurers entering it over the last 18 months.
There are many other important factors that shape endgame planning for each individual scheme, including the employer covenant, investment strategy (including illiquid assets), and the scheme size. Wider considerations can include areas such as member experience and scheme governance. These all play their part in shaping which options are most appropriate, and which can be ruled out quickly.
While it is a real positive that there are now so many options for schemes to consider, with the increasing number of options and influencing factors, how do schemes reach the best decision on the most appropriate endgame for them?
Our video below (which was recorded ahead of the aforementioned UK Government changes) discusses these key points.