Skip to content

Position of pension schemes improve

Rising stock markets during February helped improve the funding position of defined benefit pension schemes in the UK, according to new figures.

A Pension Protection Fund report showed that the country's 6,560 defined benefit pensions, including final salary schemes, had a collective surplus of £48.4 billion last month compared to £46.1 billion in January.

The figure was more than double the £23.7 billion surplus recorded in February 2010. It meant that the schemes had assets worth 105.2 per cent of the liabilities they faced.

A rise in UK and global equity prices was one of the driving factors behind what is a 1.3 per cent rise in the value of schemes' assets, although slightly offset by a 1.1 per cent jump in liabilities.

The value of pension scheme assets has risen by 10.5 per cent in the past year to stand at £986 billion while liabilities have increased by only 7.9 per cent in the same period.

But despite the fact that pensions collectively had a surplus at the end of last month, 56 per cent of schemes are still in the red, facing a collective deficit of £53.4 billion.

Copyright © Press Association 2011

'WESLEYAN’ is a trading name of the Wesleyan Group of companies.

Wesleyan Assurance Society and Wesleyan Bank Ltd are authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Wesleyan Financial Services Ltd, Wesleyan Unit Trust Managers Ltd, Syscap Ltd, Practice Plan Ltd and DPAS Ltd are authorised and regulated by the Financial Conduct Authority.  Advice about investments, insurance and mortgages is provided by Wesleyan Financial Services Ltd.

Click for more information about the Wesleyan group of companies.

© 2016 Wesleyan Assurance Society