Aon reports that trustees of defined benefit (DB) pension schemes are increasingly opting for a “run-in” endgame strategy, which involves using a run-on phase as a stepping stone towards eventual buyout. Despite a steady start to 2026, the UK risk settlement market is poised for significant growth, driven by several key factors.
According to Martin Bird, Aon’s senior partner and UK head of risk settlement, “After a relatively subdued start to 2026, activity levels in the UK pension risk settlement market are again starting to surge.” He added, “We are seeing a significant pipeline of transactions building across the market, including several very large schemes. We expect to see high transaction volumes up to the year-end and then on into 2027.”
The market’s evolution is being shaped by strong funding positions and attractive pricing from insurers, leading trustees and sponsors to take a thoughtful approach to endgame strategies. Aon has observed the emergence of “surplus deals” that enable trustees to secure favorable balance sheet positions and protect members’ benefits, as noted by Bird.
For many pension schemes, the decision-making process has become more subtle, with run-on no longer being a simple either-or choice with buyout. Instead, trustees are increasingly viewing run-on as a temporary phase that can be used to build resilience, enhance member outcomes, and maximize value before ultimately pursuing a buyout. This approach is characterized by a more controlled “run-in” strategy.
John Baines, Aon’s senior partner, attributes the surge in pension risk transfer activity to the “exceptionally attractive” pricing offered by insurers. He notes that pricing improvements over the past 12 months have been driven by strong competition and insurers’ growing access to external capital.
However, as the number of options for pension schemes increases, the decision-making process is becoming more complex. Trustees must assess a wider range of options, risks, and trade-offs, making it essential to have the right information, advice, and governance framework in place. As Baines concluded, “The key challenge is ensuring they have the right information, advice and governance framework in place to make those decisions with confidence.”
