Executive summary: 2025 CFO Survey Results
Results paint a picture of a DB landscape in transition.
A recent survey1 of 173 CFOs and senior finance executives, conducted by Argyle in collaboration with Mercer, revealed some interesting findings about how executives navigate the complexities of pension plan management. In particular, the survey provided insights on how finance executives approach funding, plan design, risk transfer, and investment tools as they look to effectively manage both their businesses and their defined benefit (DB) plans.
As interest rates fluctuate and inflationary pressures linger, CFOs are redefining the role of DB plans. While some organizations have opted to terminate their plans in response to current market conditions, a significant percentage are choosing not to walk away; instead, CFOs are reimagining the future of DB plans.
Following a record number of plan terminations in recent years, half of CFOs now indicate they do not plan to terminate their DB plans in the near future. This suggests that many organizations are adopting a strategic approach to long-term pension management. Those organizations that were poised to exit have already done so, leaving the remaining entities to carefully assess their options and timelines.
More than half are also considering changes to plan design in 2025, exploring hybrid structures and flexible arrangements such as cash balance plans. This growing interest in creative plan design signals a move towards more adaptable pension solutions that cater to the diverse needs of the modern workforce while keeping the risks for the organization at an acceptable level.
Risk transfer remains a central theme, with over 70% of organizations expecting to offer lump-sum payments within the next two years. In addition, over 60% have either completed or are considering transferring retiree obligations to insurers through annuity purchases. Notably, perceptions of annuity costs are improving, with more than half of respondents now viewing them as competitively priced.
DB plan governance continues to evolve. In 2025, 70% of organizations have adopted dynamic de-risking strategies—up nearly 10% from 2023—while close to 44% have shifted more assets into fixed-income investments to enhance pension funded status stability. The move toward professionalized oversight is clear, showing an increase from 2023 in organizations operating under a full OCIO model, reflecting increased reliance on external expertise.
This is also consistent with the fact that less than 40% of CFOs feel highly confident in their in-house resources to manage the complexities of DB plans. Time and expertise constraints are a concern, with over half of organizations citing difficulty in executing necessary changes promptly. In response, many are leaning into data-driven tools, such as dashboards and analytics, to guide decision-making and drive efficiency.
Finally, the governance conversation is expanding to reflect deeper organizational values and being redefined as a reflection of the trust and values of the organization, emphasizing the importance of cultural alignment in pension management.
Together, these insights paint a picture of a DB landscape in transition. CFOs are not retreating from pensions; they are rethinking them.
