Trustees and sponsors of defined benefit (DB) pension schemes need clearer decision-making frameworks to navigate the growing range of endgame options, Hymans Robertson has said.

In its latest Excellence in Endgames paper, DB endgames: state of the nation, the consultancy noted that policy ambition for DB schemes has evolved significantly since the Mansion House reforms were announced in 2023, but has yet to translate fully into practice.

Hymans warned that legislation alone would not be enough to reshape the DB market, arguing that trustees and sponsors must work together to determine the right long-term strategy for both employers and members.

The report noted that around 80 per cent of UK DB schemes are estimated to be fully funded on a low-dependency basis, while 60 per cent are fully funded on a buyout basis.

Hymans said this meant many schemes are reassessing their long-term options from a “profoundly different standpoint”, with the debate moving from whether an endgame is achievable to which route is most appropriate.

Run-on is gaining traction as a credible strategic option, Hymans suggested, with more trustees and employers considering whether to retain schemes rather than move directly to insurance.

It added that the traditional insurance market remains attractive, with around £40bn of buy-ins completed in 2025, while superfunds and consolidation arrangements are widening the range of settlement options available.

However, the report warned that many schemes are still reassessing their options and several are pausing to see how government policy and market practice develop.

It identified a number of barriers to progress, including more complex decision-making, uncertainty over who should drive endgame discussions, mixed employer appetite for run-on, uncertainty around surplus sharing, and an incomplete regulatory framework.

Hymans Robertson head of DB scheme actuary services, Laura McLaren, said: “The expanded range of endgame options has made decision-making more challenging.

“Trustees and sponsors are now navigating a more complex set of trade-offs, often without clear precedent, while also contending with ongoing regulatory uncertainty and differing stakeholder priorities.

“The challenge is less about access to options and more about how to navigate them effectively.”

McLaren argued that one of the biggest barriers was alignment between stakeholders.

“Whether that’s agreeing objectives, defining roles, or building confidence to move ahead while the regulatory picture continues to evolve,” she continued.

“Without a clear framework for comparing options, it can be difficult for schemes to make timely and well-informed decisions.

“To address this, trustees and sponsors should focus on early engagement, establishing a shared understanding of their long-term goals, and putting in place structured decision-making frameworks.

“Taking a proactive and collaborative approach will be critical to building confidence and ensuring schemes can move forward with clarity.”

Meanwhile, Hymans identified surplus as a "growing bottleneck" for schemes, raising difficult questions about ownership, timing, release mechanisms, and how it should ultimately be used.

The consultancy noted that some stakeholders believe surplus should be used to enhance DB member benefits, while others see scope to improve outcomes for younger defined contribution savers or return value to sponsors that have funded schemes over many years.

It warned that, although the Pension Schemes Act sets in motion the legal framework for greater surplus flexibility, much of the detail remains subject to secondary legislation and guidance.

Hymans Robertson head of corporate consulting, Leonard Bowman, commented: “The DB landscape has shifted significantly in a relatively short period of time, with many schemes now in a much stronger funding position than before.

“While this improved position is positive, it has also brought more complexity. With more choice comes more difficult decision-making, and complexity in advice frameworks.

“At the same time, we’re seeing continued innovation across the market, alongside a policy environment that is still evolving, which is prompting many sponsors and schemes to pause and reassess.”

Bowman stressed it was important for sponsors and trustees to adopt a “common currency” when evaluating different options, using the same financial metrics and assumptions.

“Combined with starting with a principles-based discussion, this can quickly help all parties navigate to a common understanding,” he added.

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