Pension scheme deficits fall £50bn in September
Higher equity markets drive asset levels up while high gilt yields fall due to higher gilt yields.
The aggregate deficit of schemes in the Pension Protection Fund 7800 index has fallen more than £50bn over the month of September.
Deficits for the 6,432 schemes in the index fell to a total of £229.1bn at the end of September 2012, down from a deficit of £280.3bn at the end of August. The funding ratio, in other words the total assets as a percentage of total liabilities, increased from 79.1 per cent to 82.3 per cent.
Total assets on the index were £1,065.6bn, up 0.3 per cent over the month and 11 per cent year on year, reflecting rises in equity markets. Total liabilities were £1,294.7bn, down 3.6 per cent over the month mainly driven by higher gilt yields, and up 11.1 per cent year on year.
There were 5,248 schemes in deficit and 1,184 schemes in surplus.