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...

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