Marvin OnumonuDefined benefit (DB) pension surpluses rose by £26bn in the past year, according to XPS Group analysis.
As of 30th June 2025, UK pension schemes had assets of £1,151bn and liabilities of £962bn.
This put the aggregate funding level at 120% of the long-term value of liabilities, up 4% from last year.
Funding levels remained strong in June 2025, as trustees and employers responded to recent changes, including the Pension Schemes Bill, the Government’s response to the DWP consultation on “Options for Defined Benefit Schemes”, and new guidance from The Pensions Regulator (TPR) about endgame options.
Trustees and employers are now reviewing their long-term plans and looking for ways to improve outcomes for everyone involved.
A recent poll by XPS Group showed 76% of trustees were more likely to use the new statutory override that allows them to distribute surplus.
Jill Fletcher, senior consultant at XPS Group, said: “Many DB schemes are now fully funded on or above their long-term funding basis and are considering their objectives and strategy for reaching that endgame.
“While for some schemes the objective will continue to be working towards insuring benefits through buy-in or buy-out, the potential to run-on a scheme and make use of the recently announced surplus flexibilities may now be a more attractive and feasible option for others.”
