The FINANCIAL — Pension deficit improved by a total of £43bn from £72bn at the start of the year to £29bn
The reduction in the deficit in the first half of 2018 is more than three times the total reduction for the whole of 2017, according to Mercer.
2018 expected to be a record for pension risk transfer due to improved funding levels, attractive pricing in the market and uncertainty over Brexit all driving risk reduction.
Mercer’s Pensions Risk Survey data shows that the accounting deficit of defined benefit (DB) pension schemes for the UK’s 350 largest listed companies decreased from £72bn at the start of 2018 to £29bn on 29 June. The decrease in the gap in H1 2018 is more than three times the decrease for the whole of 2017.
At 29 June, liability values had decreased by £39bn to £818bn compared to £857bn at the end of 2017 due to an increase in corporate bond yields. Asset values were £789bn, an increase of £4bn compared to the corresponding figure of £785bn at the end of 2017. The quoted funding level improved from 92% to 96%.
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