Defined Benefit Study
The Changing
Ecosystem of Defined Benefit Pensions
Identifying trends and priorities driving the UK institutional market
The Changing Ecosystem of Defined Benefit Pensions
With the landscape of DB pensions changing, it provides an opportune time to take stock of the market and the key priorities and concerns facing industry stakeholders.
We are therefore 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.
Our latest research sheds light on the priorities and concerns of Defined Benefit (DB) pension schemes in early 2024. In this fourth edition, we witnessed a greater spread of responses, indicating a wider range of challenges faced by schemes.
Key findings
Volume 4 – Spring 2024
Improving and maintaining funding levels (48%) and improving ESG (45%) are the most cited priorities among respondents.
A larger proportion of respondents (when compared to autumn/winter 2023) expect to increase their allocations to Developed Market Equities (+11%) and Emerging Market Equities (+8%) in the next six months.
Differing priorities between larger and smaller schemes. A third of smaller scheme respondents said derisking was a priority. For comparison, half of larger scheme respondents said it was their priority.
Over half (58%) of respondents plan to increase their focus on climate change risk over the next 12 months. Yet, 77% of respondents say they are unlikely to focus on impact investing.
46% of respondents cite regulation as a key concern – up 21% from our prior autumn/winter 2023 survey.
VOLUME 4 – SPRING 2024
The Changing Ecosystem of Defined Benefit Pensions
Any opinion expressed is that of Russell Investments, is not a statement of fact, is subject to change and does not constitute investment advice.
The value of investments and the income from them can fall as well as rise and is not guaranteed. You may not get back the amount originally invested.
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Simon Partridge
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