There is "strong" demand for run-on from defined benefit (DB) pension trustees, with nearly two fifths (38 per cent) wanting the government to encourage surplus creation instead of buyout, research from Charles Stanley Fiduciary Management has found.

Asked what they would like the government to prioritise from a pensions perspective ahead of the Autumn Budget, nearly half (42 per cent) of DB pension trustees said the government needs to decide whether to provide additional support to those not able to work up to an increased state pension age, and how any such support should be targeted.

In addition to this, 30 per cent think a long-term plan is needed for the level of the state pension.

Just over a third (34 per cent) of DB scheme trustees said the government needs to decide whether to go ahead with legislated increases in minimum pension contributions, while 31 per cent think the mansion house reforms should be a priority to promote investment into British firms or capital.

A further 25 per cent said the government should target a long-term policy solution to support pension saving among the self-employed.

However, less than a quarter (23 per cent) said that the government should focus on encouraging the consolidation of small DB pots - although this rose the more small pots a trustee looks after.

Commenting on the findings, Charles Stanley Fiduciary Management senior portfolio manager, Barnaby Low, said: “Trustees remain focussed on ensuring positive outcomes for all pensioners, and have highlighted several areas where government action is needed.

"As bond yields have risen and equity markets continue to rally, funding levels have improved significantly for many schemes in recent years.

"With buyout capacity constrained, many trustees and sponsors are considering running their schemes in order to generate or grow a surplus, and are looking for regulatory clarity. It is an exciting time for the industry as providers develop innovative solutions.”

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