As expected, the poll, which was shared with 300 pension trustees and sponsors at an XPS online event, found that insurance buyout was the preferred destination for over half (53%) of respondents.
However, over one in four trustees and sponsors (27%) said that running their scheme on to generate extra surplus was either the right strategy now or would be the right strategy if the government regulated to give more flexibility on surplus to employers and trustees.
3% of respondents thought that superfunds were the right endgame for their scheme, with 17% of respondents undecided.
Commenting on the results, Wayne Segers, Partner at XPS Pensions Group, said: “While buyout will ultimately be right for many schemes, our poll reflects the growing interest we are seeing in running on and generating surplus for the benefit of DB members, employees’ DC savings and employers’ UK businesses. The poll results show a clear desire for support from Government in doing this. In response to the Government’s Mansion House consultations, we have set out a pragmatic proposal which would improve outcomes for scheme members and drive UK growth.”
A second poll found that 69% of respondents thought that DB schemes had a role to play in investing more in productive finance (such as private equity, infrastructure and start-ups), with 36% of respondents thinking this should be confined only to schemes that were open to new members and 33% thinking this should apply more generally. The remaining 31% of respondents thought that this should not be the case at all.
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