Over 50 per cent of pension schemes now offer members additional retirement support beyond the statutory minimum, analysis from Aon has found, with many schemes looking to provide increased support and flexibility to members at retirement.

The survey, which covers the views of over 250 defined benefit (DB) schemes and the 10 UK bulk annuity insurers in the market, revealed a growing focus on enhancing the retirement journey for members, with schemes and insurers increasingly providing digital tools, financial advice and benefit flexibility.

In particular, the research found that nearly a third (30 per cent) of schemes now offer pension increase exchange (PIE) and bridging pension options (BPO) at retirement to their members.

And member uptake is strong, as Aon found that around 36 per cent of eligible members have opted to use PIE, while 55 per cent of eligible members have opted for BPO when they were made available.

In addition to this, the survey found that more than a quarter (26 per cent) of schemes make independent financial adviser (IFA) support available to members at retirement, with more planning to offer it in 2026.

“For many pension scheme members, their decisions at retirement are the most financially significant they will make in their life, so it’s encouraging to see that trustees and sponsors are offering them increasing support," Aon partner, Tom Williams, said.

“With members transferring out of schemes at an historic low, in-scheme options are providing much needed opportunities for them to reshape their benefits within the pension scheme.

"It’s clear from the number that are choosing these options that the flexibilities are really valued. It’s also not surprising that more choice is often accompanied by more support being made available to members to help them with their decisions."

Similar findings were found when looking at the bulk annuity insurer market too, as Aon found that, as the number of schemes offering additional member options and support increases, so too does the appetite for insurers to keep these options and support in place post-transaction.

According to the survey, the majority of insurers would quote to offer BPO at retirement for transactions of any size, with all willing to offer BPO at retirement on transactions over £750m.

There were also opportunities to retain PIE at retirement, although this was only true for a smaller pool of insurers, as five out of 10 insurers said they would offer this for transactions over £750m.

However, all but one of the 10 insurers said they would offer a self-service administration portal to policyholders by the end of 2026, with a smaller but growing number of insurers being able to offer members access to sophisticated retirement modellers or IFA support.

"We’re seeing a real shift from insurers" Williams pointed out. "Bulk annuity providers have not typically provided IFA support or educational modellers after buyout".

He continued: "It’s encouraging to see them reacting to the demand from schemes to be able to maintain the member experience after a transaction has taken place.

"Trustees and sponsors have an important role to play in continuing to drive that change. Engaging early on in the process with insurers can demonstrate the importance they place on member options and support and ensure that this member-first approach continues beyond buyout.

“Looking ahead, we see three big factors that may influence member experience over the coming years: increased digital access to pensions, pension dashboards and continued economic uncertainty.

"We will continue to track how the market accommodates and adjusts to these significant changes.”

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