View more on these topics

Combined DB scheme deficit increases by £40bn in August

105 schemes fell into deficit in August

Pensions-savings-retirement-piggy bankThe combined deficit of defined benefit pension schemes increased by £40bn in August according to a Pension Protection Fund index.

The PPF 7800 index gives the funding position for the DB schemes that are potentially eligible for entry to the lifeboat fund.

It calculates this based on the premium due to an insurer to take on paying the PPF levels of compensation.

At the end of July the aggregate deficit of the 5,794 schemes in the index was £180.1bn but it rose to £220.4bn at the end of August.

At the end of August 2016, the deficit was £413.1bn.

Last month total scheme assets were £1.55trn and total liabilities were £1.77trn. Scheme assets increased by 1.9 per cent over the month and increased by 4.5 per cent over the year.

Scheme liabilities increased 4 per cent over the month and decreased by 6.6 per cent over the year.

There were 4,261 schemes in deficit and 1,533 schemes in surplus. The number of schemes in deficit increased by 105.

The funding ratio decreased from 89. per cent at the of July to 87.6 per cent at the end of August.

Recommended

FCA building FCA fees
2

FCA reviews ‘lifestyling’ strategies at pension providers

The FCA has said that some providers are failing to check that the ‘lifestyling’ of funds used by advisers is still suitable in the wake of pension freedoms. The regulator conducted a review late last year into whether lifestyle investment strategies – which, up until the pension freedoms, tended to gradually alter a client’s asset […]

Guarantees in the retirement income market

Lorna Blyth, Royal London  Do guarantees benefit customers and, if so, when? To answer this conundrum we commissioned Millimans, a global actuarial consulting firm, to conduct an independent review of the UK retirement income market and whether guarantees really do offer customers better value for money. The brief The study was one of the most comprehensive undertaken […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment