Outlook for Defined Benefit (DB) pensions in 2025

“First, we expect more clarity around the Government's agenda for private sector DB schemes. The Chancellor’s recent Mansion House speech and the ongoing Pension Investment Review focused on LGPS and DC. But we envisage there will be more policy focus on DB schemes in the coming year.

Second, within that private sector DB policy we expect the conversation on how productive finance can boost the UK economy to rumble on and continue to be a big focus in the new year.

While this topic gained significant headlines this year, 2025 is going to be the year that we have to start unpacking the details behind it. We expect greater clarity on what the productive finance conversation really means, and how it will affect the primary responsibilities of trustees to deliver the outcomes for members.  

Third, we anticipate the conversation around consolidation will accelerate further, and the types of consolidation that are going to come to the market, as alternatives to a buy-out endgame.

More trustees will likely turn their attention to their endgame and what consolidation options for schemes are at their disposal.  We are seeing continual innovation in what these options are, whilst other less embryonic solutions will gain further traction.”