Marvin OnumonuOver two thirds (67%) of defined benefit (DB) pension scheme members said their main priority was having confidence their pension would be paid for life, according to research from Hymans Robertson.
Trust in the organisation managing their pension was a key priority for over half (54%) of members.
Nearly two thirds (60%) said they would support their scheme running on to generate a surplus.
A quarter (23%) said they would not mind their pension being transferred to an insurance company as long as it remained secure, while 14% said they would feel more financially secure with an insurer.
Just under half (43%) were unsure about moving their benefits to an insurer, and a third (31%) had concerns such as losing flexibility or valuable options, customer service, missing out on pension increases and losing the employer link.
Nearly two thirds said they would support their scheme running on to try and generate a surplus through long-term investment risk.
(58% believed surpluses should benefit members directly, while just over a quarter (27%) thought surpluses should stay in the scheme to improve security.
Only 7% said employers should be the sole beneficiary, while a fifth (20%) thought both members and employers should benefit.
Laura McLaren, partner and head of DB scheme actuary services at Hymans Robertson, said: “Members want to feel reassured that their benefits are safe above all else.
“However, getting support for decisions can be complicated by gaps in member knowledge and understanding.
“The security members seek isn’t just a technical outcome, it’s an emotional one.”
McLaren added: “That’s why it’s crucial for trustees to actively consider member views, bridge knowledge gaps, and communicate the scheme’s endgame journey in ways that are clear, accessible, and genuinely aligned with members’ needs.
“Understanding the unique dynamics of each scheme is essential for trustees and sponsors in delivering the best outcomes for members.
“Speaking to member-nominated trustees or member consultation can add value by bringing direct insight into the concerns and priorities of the membership.”
She said: “By taking these views into account, trustees can better tailor their strategies and communications, ultimately fostering greater trust and engagement among members.
“When it comes to endgame decisions for a scheme, there is no single definitive answer about which endgame option members prefer.
“This will be shaped by both scheme-specific and individual circumstances.”
She added: “Our research findings offer reassurance that, when options are clearly explained and understood, members generally show openness to a range of possibilities.
“This emphasises the call to action for trustees and sponsors to pause and consider the full range of endgame options and find the right fit.”
Donna Prince, head of member experience at Hymans Robertson, said: “Our research provides valuable insight into how a member feels about their pension, particularly when looking at the various decisions trustees and sponsors make to better protect their members’ benefits.
“Whilst trustees and sponsors receive training and professional advice on the various options available to them members do not.
“So, we can’t assume that members understand the protections or benefits offered by options such as insurance or running on.”
Prince added: “Beyond insurance pricing, factors such as flexibility, customer service and the overall journey they are on are important to members.
“Trustees should consider this when selecting insurers and navigating their approach.
“They must ensure they carry out appropriate due diligence on the administrative capabilities and the member experience provided by the insurer.”
She said: “For schemes running on, it’s important for trustees to maintain a high-quality member experience.
“To achieve this, they should ensure they have a robust framework and reporting in place to monitor the scheme’s administration services.
“Communications we are providing to members must also be a focus, to be sure that, regardless of the endgame journey, members have reassurance, clarity and comfort.”
She added: “Ultimately, members want confidence in the security of their pension benefits for the long term alongside trust in the organisation managing their pension. It’s vitally important to get the member experience right.”
