Management Consulting
Aon
Full Credential Description
Aon's 2025 Endgame Survey revealed significant insights into the preferences of UK defined benefit (DB) schemes regarding their endgame strategies, particularly influenced by scheme size, industry sector, and geographical location of the sponsoring employer. The survey, which included over 200 schemes primarily from the private sector, highlighted that 23% of schemes are still deliberating their endgame options. Among those who have made decisions, 71% plan to transition to an insurance solution as soon as feasible, indicating a strong preference for securing their liabilities through insurance. Notably, the survey found a marked increase in the number of larger schemes (those with over £1 billion in assets) opting for a longer-term run-on strategy, with 62% of these schemes indicating a desire to extend their operations beyond the point of being settlement ready, a significant rise from 25% in the previous year. This trend suggests that larger schemes possess the resources and economies of scale necessary to support such strategies, contrasting with the 88% of smaller schemes (under £100 million) that prefer immediate insurance solutions. The findings also indicated that the industry sector plays a crucial role in shaping endgame preferences. Sectors such as construction, engineering, hospitality, and travel showed a higher inclination towards insuring their schemes, while financial services and energy sectors leaned towards longer-term run-on strategies, likely due to stronger covenants that enhance the viability of such approaches. Additionally, geographical factors influenced preferences, with North American-headquartered employers demonstrating a greater appetite for run-on strategies compared to those based elsewhere. Aon has developed the Discover, Develop, Deliver Endgame framework to assist schemes in navigating these complex decisions. This framework helps stakeholders articulate their objectives, develop a clear view on their preferred endgame, and utilize modeling to support decision-making, ultimately facilitating the successful implementation of their chosen strategy.