Defined benefit (DB) pension schemes are increasingly pursuing different endgame strategies as funding levels improve, according to research from the Pensions Management Institute (PMI) and Schroders.

The study revealed that while 45 per cent of schemes were targeting a buy-in or buyout within the next decade, a third expected to run on indefinitely, 18 per cent planned a limited period of run-on before moving to insurance, and 5 per cent selected a consolidator route.

The PMI and Schroders UK Pension Scheme Survey 2026 found that 75 per cent of respondents reported stronger funding on a buyout basis, while 68 per cent said their technical provisions funding had improved.

However, despite stronger funding positions, the survey suggested there is no clear consensus on endgame planning.

The findings suggested that improving funding levels had prompted many schemes to shift their focus from deficit recovery to broader strategic decisions.

The survey followed recent calls from The Pensions Regulator for DB schemes to have clear endgame plans as funding levels improve and more schemes move into surplus.

Speaking at the PMI’s Endgame Solutions Conference, PMI president, Girish Menezes, said stronger funding levels were giving schemes greater choice, with some pursuing buyout while others opted to run on.

He said this reflected “a diverse market where good strategy must be scheme specific”.

“The important test is whether those choices are informed, evidence-led and well governed, with trustees equipped with the knowledge and confidence to exercise sound judgement,” he added.

Schroders head of solutions, Ajeet Manjrekar, commented that while improved funding has created more options for pension schemes, it also brings more complex decisions.

“Whether trustees are targeting insurance, planning to run on or exploring alternative consolidation solutions, success will increasingly depend on aligning investment strategy and have the appropriate governance framework in place.

“The next phase of the endgame is not simply about funding levels, but about having the discipline and expertise to turn stronger positions into better member outcomes.”

Elsewhere in the research, schemes signalled a continued move towards lower-risk, portfolios, with 52 per cent expecting liquidity to become a higher investment priority over the next 12 months.

The survey also found growing focus on governance, trustee capability and cyber resilience, while 40 per cent of respondents reported having no allocation to UK productive assets.

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