Delivering corporate DB pension strategy in a changing market

Defined benefit (DB) pension schemes are entering a new era. Improved funding levels and market innovation have increased the range of options available to sponsors. 

But greater choice doesn't always make decision-making easier.   

The challenge now is to assess those options and determine which strategy will deliver the best outcome for the sponsor and the members. 

Our corporate DB pension strategy report is designed to provide that clarity. Combining analysis of the FTSE 350's pension obligations with insights from a survey 150 board-level decision-makers, it is designed to help those involved in corporate DB pension decision-making understand the options available and a choose a strategy they can pursue with confidence.

What the report covers

• A snapshot of today's UK DB pension landscape, including funding trends across FTSE 350 schemes and market developments 
• An analysis of the three leading strategy options: buy-in/buyout with an insurance company, transfer to a superfund and intentional run-on 
• The key opportunities, challenges and considerations associated with each option 
• Practical insights on turning strategy into action, from governance and preparation through to implementation 

Key findings

• Around 50% of FTSE 350 DB schemes are now fully funded on a buyout basis 
• While 90% of companies have defined a long-term DB strategy, only 35% are very confident they have chosen the right one 
• Buy-in/buyout with an insurance company remains the dominant endgame strategy, with 50% of surveyed companies identifying it as their preferred long-term objective
• Superfunds are moving into the mainstream as 70% of companies are willing to consider them as a lower-cost alternative to buyout,
• Choosing the right strategy is only half the challenge. Strong governance, trustee alignment and cost control are critical to successful execution

Explore the findings to discover the latest market trends, strategic insights and practical actions for corporate DB pension sponsors.