Majority of final salary schemes to be fully funded in three years

Positive movement in funding for clients with DB pensions

Holly Roach
clock • 1 min read

The majority of the UK's defined benefit (DB) schemes expect to be fully funded by 2027, according to XPS Pensions Group research.

In a recent survey, the consultancy found 62% of final salary schemes expect to be fully funded for buyout before 2027. XPS said this finding "reinforces the indication that demand for buyout is likely to increase given UK pension schemes' strong funding positions". The firm's DB:UK tracker recently showed DB schemes are now around 95% funded on a buyout basis, compared to 69% at the beginning of 2022. Head of risk settlement Stephen Purves said: "The funding gains we have seen during 2022 have been locked into by lots of schemes via asset de-risking and we are seeing the demand fo...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

QROPS class actions: What next for frustrated UK expats?

QROPS class actions: What next for frustrated UK expats?

Calls for reform across the board as insurers fight back in IoM

Isabel Baxter
clock 29 May 2025 • 7 min read
Baroness Altmann calls for 25% UK investment in exchange for pension tax reliefs

Baroness Altmann calls for 25% UK investment in exchange for pension tax reliefs

Former pensions minister says bold reform would be a game-changer for UK growth

Jonathan Stapleton
clock 07 May 2025 • 2 min read
'The purchased life annuity market deserves to grow': Should there be more options?

'The purchased life annuity market deserves to grow': Should there be more options?

A ‘lack of competition in the market’

Isabel Baxter
clock 29 April 2025 • 4 min read