Defined Benefit Study

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IDENTIFYING TRENDS AND PRIORITIES DRIVING THE UK INSTITUTIONAL MARKET

The Changing Ecosystem of Defined Benefit Pensions

 

We are pleased to present the findings of Russell Investments’ UK Defined Benefit Market Insights study, a series which surveys senior decision-makers to understand their current views and priorities.

In the latest volume of our research, we capture the defined benefit market in a state of confident pragmatism. Schemes are increasingly secure in their funding positions and their focus is now firmly on executing their endgame strategies. The question facing many schemes is no longer where they are going. Instead, it is whether they have the right teams, structure, and governance in place to get there.

Volume 6 - Autumn/Winter 2025

Key findings

respondents

Buyout is still the most desired endgame destination with 38% of respondents citing it as their current target. Behind it is low dependency run on/off, which was selected by 32% of respondents, up from 27% last year.

management

Many schemes’ endgame journeys are already underway, but they are not in a rush. 39% of respondents said they had already carried out a risk transfer, with only 24% considering one in the next twelve months.

funding

The most cited challenges facing schemes include geopolitical conflict (41%) and inflation and central bank policies (34%). Growing concerns include market selloffs and volatility, which rose to 32%, up from 20%, and recession, which more than doubled to reach 22%.

social

Factors such as depth of expertise (57%) and assistance with moving to endgame (27%) saw increases as a reason for appointing an outsourced provider. Manager selection (43%) and risk management (42%) remain key factors.

Regulatory

More than half of schemes (54%) have set a net-zero target, while the proportion still undecided or without a target has fallen from last year.

Volume 6 – Autumn/Winter 2025 The Changing Ecosystems of Defined Benefit Pensions - Autumn/Winter 2025

We are pleased to present the findings of Russell Investments’ UK Defined Benefit Market Insights study, a biannual series which will survey senior decision-makers to understand their current views and priorities.

Download insights study
Changing Ecosystems of Defined Benefit Pensions

Previous volumes 

Spring / Summer 2024

Volume 5

In the latest volume of Defined Benefit Research, we share the changing attitudes of Defined Benefit (DB) pension schemes toward their end-game strategies. While the traditional path to buyout remains the default option, there is a subtle shift toward considering alternative approaches.

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Spring / Summer 2024

Volume 4

In this fourth edition, we witnessed a greater spread of responses, indicating a wider range of challenges faced by schemes.

Read case study

Autumn / Winter 2023

Volume 3

In the autumn of 2022, the pensions world was rocked by the UK Government’s autumn statement announcement. A huge crisis in the UK gilt market followed.

Read case study

Spring / Summer 2023

Volume 2

The second volume highlighted the impact of increasing regulatory requirements, geopolitical concerns and ongoing considerations around environmental, social and governance (ESG) issues.

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