Two thirds (66 per cent) of companies with defined benefit (DB) pension schemes have already reviewed their long-term pensions strategy in response to improved funding and the growing range of endgame options, according to a report from Independent Governance Group (IGG).

The report, The Pensions Balancing Act, surveyed 100 UK CEOs, CFOs and senior pension decision-makers during July 2026, and found a further 27 per cent were currently undertaking a review.

Only 10 per cent intended to secure a buyout with an insurer as soon as practical, while 15 per cent were considering running on their scheme in some form – although more than half expected to pursue buyout eventually.

According to the research, 40 per cent of employers view well-funded DB schemes as a potential source of value, compared with 22 per cent who see them primarily as a balance-sheet risk.

Commenting on the report, IGG trustee director and head of risk transfer, Hatty Goodwin, explained that as funding conditions had improved, there were “more credible options” available to sponsors and trustees, who are “rightly testing the market” to find which best fits their scheme, their obligations and their objectives.

She warned that the debate should not be framed as simply buyout versus run-on. “The focus is now also on timeframe,” she said.

“Run-on strategies can be used in the short, medium and long term to achieve better outcomes for members and sponsors," Goodwin continued.

"The insurance market remains a secure route to remove risks off the balance sheet when the time is right.”

Governance also emerged as a key theme in the research, with 34 per cent of respondents identifying stronger alignment between sponsors and trustees as their top priority.

IGG trustee director and head of strategic pension solutions, David Farmer, added: “Every route – buyout, run-on, capital-backed, consolidation – depends on sponsor and trustee agreeing what good looks like before they commit.

“Delaying this dialogue risks turning a genuine appraisal of the options into a defensive negotiation. True alignment must be built collaboratively to produce the best answer for members and the business.”

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