Defined benefit
Upside in run-on for DB schemes: true or false?
10 min watch 17 Apr 26
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Defined benefit schemes have entered a new phase, with improved funding levels raising fundamental questions about endgame strategy. Gurbani Swanni-Leach, Head of Endgame Solutions at M&G Investments and Calum Cooper, Head of Pension Policy Innovation, Hymans Robertson, explore whether running-on can genuinely deliver better outcomes than insurance-backed solutions, examining the upside, risks and investment implications.
With many schemes now in surplus and policy momentum focused on growth and innovation, Gurbani and Calum explore the fundamental choice between insurance and run-on. The discussion focuses on where value is created, how investment strategy underpins outcomes, and whether trustees may be overlooking meaningful upside for members by defaulting to traditional buy-out approaches.
Run-on or buy-out? Reframing the DB endgame decision
Building on the big-picture debate, Gurbani and Calum take a deeper look at the upside and risks across different DB regimes, including run-on, superfunds and insurance-backed solutions. Comparing how investment strategy, longevity risk and capital support shape outcomes for members and sponsors. They also consider what running on at scale could mean for gilt markets and the wider UK economy, highlighting why innovation in assets, risk mitigation and structure is becoming central to modern DB decision-making.
Unlocking upside; risk, investment strategy and the role of innovation
If you would like to discuss any of the topics in these videos, please contact the DB Solutions team.
The DB Solutions team
The value of investments will fluctuate, which will cause prices to fall as well as rise and investors may not get back the original amount they invested. Past performance is not a guide to future performance. The views expressed in this document should not be taken as a recommendation, advice or forecast.
