UK pension funding levels prove resilient in February despite the crisis in Ukraine
UK pension funding levels prove resilient in February despite the crisis in Ukraine
XPS’s DB:UK funding tracker reveals that total scheme assets fell by £25bn over the month to 28 February 2022 reflecting the significant impact on global markets of the Russian invasion of Ukraine.
UK pension scheme deficits against long-term funding targets increased relatively modestly by £7bn over the month to 28 February 2022.
Liabilities fell as gilt yields continued to rise for the first half of February after the Bank of England agreed to increase the base rate by a further 0.25%, to 0.5%, but dipped off towards the end of the month.
Deficits of UK pension schemes have increased by c.£7bn over the month to 28 February 2022 against long-term funding targets, an analysis from XPS’s DB:UK funding tracker has revealed. Based on assets of £1,777bn and liabilities of £2,097bn, the average funding level of UK pension schemes on a long-term target basis was 85% as of
28 February 2022. XPS estimates that at the end of February 2022 the average pension scheme would need an additional £31,000 per member to ensure it can pay their pensions into the long-term.
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