While buyout will continue to dominate, the next two years are expected to see a material shift in endgame strategies as a large proportion of defined benefit (DB) schemes actively explore and embrace run-on and surplus-related opportunities. Whilst benefit security will always be a fundamental consideration, this is increasingly being balanced thoughtfully in considering the growing range of options available for delivering members’ benefits over the long term. The Pensions Regulator is also encouraging schemes to focus on endgame planning and to consider putting in place surplus use policies. We highlight below five of the key conclusions drawn from a recent survey of trustees and sponsors that underpin our Endgame Report 2026.
A summary of the main endgame options:
There is a range alternative approaches to endgame solutions, including:
- Sponsor swaps – such as the December 2025 Aberdeen-Stagecoach transaction. These enable a scheme to run on and potentially enhance benefits where the existing sponsor has limited appetite or ability stand behind the pension risk, in return for a share of the upside.
- Third party capital solutions – aimed at accelerating the path to buyout or potentially superfunds. A third party provides capital to allow greater investment return/risk to be run in exchange for a share of the expected upside.
- Pension captives – where schemes undertake a traditional buy-in but a significant proportion of the risk is then reinsured to the sponsor’s balance sheet, via a sponsor-owned captive insurer, to allow the sponsor to share insurance profits.
Reviewing your endgame strategy
Endgame strategy isn't just about adopting ready-made solutions, focusing solely on price or believing that decisions taken several years ago shouldn’t be revisited. Both established and emerging market players are prepared to create tailored alternatives that address stakeholders’ needs, goals and expectations. This innovation brings new levels of choice, which is positive for the UK DB landscape, but it also brings complexity – a clear and robust process around the decisions taken by the various stakeholders is vital, especially as trustees and sponsors question long-held beliefs and assumptions about the best course of action for their scheme.
WTW has developed frameworks and modelling tools to help evaluate your endgame options. Key to our process is to ensure that:
- Clear objectives are set: The priority objectives and critical issues for each party are clearly articulated from outset to help form an objective assessment against the options.
- The big picture is considered: Undertake an initial feasibility to understand the art of the possible. For all the options that fit with the objectives, the opportunities, risks and practical implications need to be properly examined and understood.
- The option is sharpened and defined: Further assess the preferred solution to optimise the outcomes and overcome initial hurdles and, where needed, ensure guardrails and protections are acceptable to trustees and sponsors.
- The finer details are agreed: Achieve stakeholder agreements, setting out the clear rationale for the preferred solution before proceeding to implement a robust and durable approach.
If you are interested in finding our more, please read our Endgame Report 2026 and contact your usual WTW consultant or one of WTW’s Endgame Strategists.
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