Over half (57 per cent) of DB scheme key stakeholders said their main investment priority is de-risking toward endgame, an increase from 39 per cent in the same period last year, according to research from Russell Investments.

The study, which surveyed 104 stakeholders at UK DB schemes including scheme CEOs, CIOs, professional, company- and member-nominated trustees, and pension managers, found that buyout is the primary endgame target, with 38 per cent of all DB schemes saying buyout was their current target.

This differed depending on the size of the scheme; buyout was more popular with smaller schemes with less than £1bn in assets (50 per cent) than larger schemes with more than £1bn in assets (26 per cent).

Meanwhile, 19 per cent of all schemes said run on is their current endgame target, 13 per cent said low dependency run off, and 30 per cent said they were undecided.

The research pointed out that of the schemes that were undecided on their endgame, it was more common for larger schemes to be undecided (39 per cent) than smaller schemes (20 per cent).

However, among the schemes that had decided on an endgame target, most were clear on their objectives, with 70 per cent reporting no change to their target or timeframe, up from 61 per cent last year.

The survey also questioned respondents on what they perceive to be the biggest challenges facing their scheme in the next six months, and the most cited challenges included geopolitical conflict (41 per cent) and inflation and central bank policies (34 per cent).

Alongside this, various concerns emerged throughout the year, as concerns around market selloffs and volatility increased from 20 per cent last year to 32 per cent this year, while the concerns about recession more than doubled to 22 per cent.

The survey also found that scheme de-risking has continued over the past year, with the proportion of respondents stating they have previously undertaken a risk transfer having almost doubled year-on-year, rising from 21 per cent in 2024 to nearly 40 per cent in 2025.

However, the proportion of schemes intending to undergo a risk transfer over the next 12 months fell from 36 per cent in 2024 to 24 per cent in 2025.

Russell Investments noted this fall is logical, as schemes typically wait several years after performing a risk transfer before performing another one.

Another key trend highlighted by the study was a growing appetite among DB schemes to allocate to private credit, rising from 7 per cent in 2024 to 17 per cent in 2025.

This increase in appetite for private credit was particularly pronounced in larger schemes, as 28 per cent of respondents at a larger scheme intend to grow their private credit allocations, compared to 6 per cent of smaller schemes.

The study also showed that the top two asset classes for increased allocations were investment grade credit (24 per cent) and government bonds (23 per cent), which changed by only a couple of percentage points from last year’s study.

When asked which asset classes they plan to reduce exposure to over the next six months, 30 per cent of larger schemes said private equity, while 24 per cent of smaller schemes said property.

The study also showed an increasing trend towards DB schemes appointing an outsourced provider, with almost two-thirds (64 per cent) of respondents stating that their scheme has appointed or is looking to appoint an outsourced provider to help manage the growing weight of governance, compliance, and investment oversight.

In terms of the specific area of focus they wanted an outsourced provider to improve, there was an increase in the number of respondents who cited assistance with moving to endgame as a reason for outsourcing (27 per cent, up from 22 per cent last year).

The most popular reason for outsourcing a provider among respondents was the desire for a depth of expertise (57 per cent). This trend was most pronounced among larger schemes, with 69 per cent selecting depth of expertise compared to 46 per cent for smaller schemes.

Similarly, 44 per cent of larger schemes also cited cost reductions as a reason for outsourcing, compared to 23 per cent for smaller schemes.

Russell Investments head of UK fiduciary management, Simon Partridge, said in this sixth iteration of the report, "trustees and stakeholders focus has shifted much more towards endgame objectives, which for many are a lot closer than they were three years ago".

"Larger schemes have a bit more interest in running on, but nearly a third of schemes are undecided about their overall endgame objective," Partridge continued.

"Schemes are de-risking their asset allocations, but are being mindful of geopolitical and macroeconomic dynamics. Those are the main themes for priorities in terms of de-risking and challenges around geopolitics and recession.

"We are also seeing more schemes consider low-dependency or run-on options, reflecting a desire for flexibility and control as they define their future path.”

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