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Focus on longevity risk

Focus on longevity risk

11 March 2026 Solutions
As the landscape for UK defined benefit (DB) pension schemes continues to evolve, trustees and sponsors face an array of strategic choices amid regulatory change and economic uncertainty. We share our current thinking on the potential impact of longevity risk and how to mitigate it for DB schemes that are running on.

Key takeaways

  • The impact of longevity risk could be significant for DB schemes, whether you are running on, or planning to buy out within the next five to 10 years.
  • We present a case study to illustrate the scale of the potential impact of rising life expectancy, showing how a DB scheme might need to increase its investment risk exposure materially to then stay on track for its endgame target.
  • By comparison, using a longevity hedge can smooth a scheme’s path to the endgame, even if you account for the cost of the hedge over time.

Read our paper A new world for UK DB schemes to find out more, along with other key trends for pension professionals to consider.

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A new world for UK DB schemes
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