Accessability Links
Cookies on our website
By continuing to use this website we will assume you are happy to receive cookies as outlined in our cookie policy
Accept Policy

PwC: DB pension funds deficit rose £60bn in March

Apr 08
 
Tags: PwC
Share this story:

The deficit of defined benefit (DB) pension funds in the UK rose by a staggering £60 billion in March 2019, according to new figures from PwC. 

According to the data from PwC’s Skyval Index, the DB pension funds deficit stood at £260 billion by the end of March - a £60 billion increase from the end of February. 

The Skyval Index is based on the Skyval platform used by pension funds, providing an aggregate check of the 5,450 corporate DB pension funds in the UK. 

At the end of March, the index showed assets of £1,650 billion set against a liability target of £1,910 billion. The figures are based on the ‘gilt plus’ method used by scheme actuaries. 

PwC’s chief actuary Steven Dicker dubbed the figures “a sign of continuing economic uncertainty” and explained that the real yields on UK inflation linked government bonds have reached an all time low. 

He noted that this makes achieving real returns to support inflation linked pension benefits all the more difficult. It is this that has contributed to this month’s significantly increased deficit, according to Mr Dicker. 

He added: “The search continues for assets which can meet inflation linked benefit outgo but which yield higher than UK inflation linked government bonds.  Once implemented, these strategies help stabilise funding levels as the assets and liabilities move in parallel with market movements.”

However, Mr Dicker continued, suitable assets are in limited supply in ways pension schemes are able to invest in them.

“Action is needed, for example, to make much needed infrastructure investment opportunities more accessible to pension schemes,” he said.

Meanwhile, Mercer has reported the UK’s 350 largest listed companies have seen their deficit of their DB pension schemes hit an 18-month high, jumping from £45 billion at the end of February to £55 billion by the end of March. 

Search Mindbench.com for the latest management consultancy jobs and consulting recruitment opportunities or contact us on +44(0)207 089 9017

Share this story:
Add new comment
Jobs Related to this Post
5 result(s) found 
Page 1 of 1 

£75k plus bonus, benefits
Central London with no travel required...
Our client is a $35mn Venture Capital (Tiger Global, Kinnevik, Vivendi) backed international technology and entertainment business. Reporting into the CFO this role will be a key asset in the future
£45k-£55k plus bonus, benefi...
Central London
About the Client: Our client is a global payments firm which are growing internationally. They are leaders in their sector and they are now looking for a Portuguese speaking strategy analyst to join
£300-£400/day
Central London
Our client is a major international trading hub based in London. They are going through a major relocation and are looking for a change manager to join them to assist with the move
£50k-£70k plus bonus, benefi...
Central London with no travel required...
Our client is a growing global insights and advisory firm focused on the professional services market place.  This role sits in Thought Leadership and Marketing Effectiveness
£70k-£100k plus bonus, packa...
Stockholm or Helsinki
Our clients mission is to connect the world through the most innovative, reliable and secure digital payment network that enables individuals, businesses and economies to thrive