The UK’s pension deficit fell at the end of September due to increases in gilt yields, according to auditing giant PwC.
The most recent figures from PwC’s Skyval Index showed the deficit of defined benefit (DB) pension funds stood at £150bn at the end of September 2018, compared to £170bn at the end of August.
The auditor’s Skyval Index is based on the Skyval platform used by pension funds and provides an aggregate health check of approximately 5,600 corporate DB pension funds.
At the end of September this year assets stood at £1.6trn and the liability target was £1.77trn.
Steven Dicker, PwC’s chief actuary, said: "September has seen another decrease in the deficit for UK pension schemes, the change this month being predominantly due to increases in gilt yields impacting liabilities more than assets."
Lincoln Pensions recently called on the Financial Reporting Council (FRC) to force FTSE350 companies to disclose figures about their DB schemes in their annual accounts, including full disclosure of significant pension risks.
The advice firm urged the FRC to make full disclosure mandatory for firms in order to help avoid a case similar to that of the Carillion crash.