Corporate Adviser
  • Content Hubs
  • Magazine
  • Alerts
  • Events
  • Video
    • Master Trust Conference 2024 videos
  • Research & Guides
  • About
  • Contact
  • Home
  • News
  • In Depth
  • Profile
  • Pensions
    • Auto-enrolment
    • DB
    • DC
    • Defaults
    • Investment
    • Master Trusts
    • Sipps & SSAS
    • Taxation
  • Group Risk
    • Group Life
    • Group IP
    • Group CIC
    • Mental Health
    • Rehab
    • Wellbeing
  • Healthcare
    • Musculoskeletal
    • Mental Health
    • IPT
    • Wellbeing
    • Trusts
    • Cash Plans
  • Wellbeing
    • Mental Health
    • Health & Wellbeing
    • Financial resilience
  • ESG
No Result
View All Result
Corporate Adviser
No Result
View All Result

DB surpluses rise prompting more to seek ‘end game’ solutions

by Emma Simon
May 9, 2023
Share on FacebookShare on TwitterShare on LinkedInShare on Pinterest

The aggregate surplus of defined benefit schemes continued to increase through April, rising from a surplus of £359.3 billion at the end of March to £378.6 billion, according to the latest industry data. 

Funding levels are still significantly higher compared to a year ago when the aggregate funding position stood at £221.9 billion at the end of April 2022. 

The figures show that the vast majority of DB schemes are now in surplus — with 4,440 in this position compared to 691 in deficit. 

Broadstone senior actuarial director Jaime Norman says: “While long-term interest rates are more stable than in 2022, there is still considerable market volatility not least through the tremors we have seen in the global banking system and persistent inflationary pressures. 

“However, defined benefit pension schemes have largely maintained their strong funding levels generated from last year’s rise in gilt yields and posted further gains through April as markets stabilised. 

“For DB schemes, the rise in surplus levels has given many an opportunity to reach end-game far quicker than they would have thought a year ago but agility will be needed to take advantage.

“We have already witnessed a rapid start to the year in terms of de-risking transactions that look to secure the future payments of scheme members with an insurer. We have also seen the Bank of England fire a warning shot across the bow of the bulk annuity market. Schemes will need best-in-class administration and data standards to attract insurer interest in this competitive market while ongoing monitoring will also allow schemes to transact rapidly should the opportunity arise.”

 

VIDEO FROM ROYAL LONDON


Find out more about how to support the switching of a workplace pension

Corporate Adviser Special Report

REQUEST YOUR COPY

Most Popular

  • HMRC research raises spectre of Budget cuts to salary sacrifice

  • DC pension funds with high equity faced losses in Q1 : Isio

  • Smart Pension to invest 15pc of default into private markets

  • Colin Fitzgerald: A new approach to wellbeing

  • Isio appoints Secondsight MD as client experience director

  • Howden and Barnett Waddingham profile: Consolidation drive

Corporate Adviser

© 2017-2024 Definite Article Media Limited. Design by 71 Media Limited.

  • About
  • Advertise
  • Privacy policy
  • T&Cs
  • Contact

Follow Us

X
No Result
View All Result
  • Home
  • News
  • In Depth
  • Profile
  • Pensions
    • Auto-enrolment
    • DB
    • DC
    • Defaults
    • Investment
    • Master Trusts
    • Sipps & SSAS
    • Taxation
  • Group Risk
    • Group Life
    • Group IP
    • Group CIC
    • Mental Health
    • Rehab
    • Wellbeing
  • Healthcare
    • Musculoskeletal
    • Mental Health
    • IPT
    • Wellbeing
    • Trusts
    • Cash Plans
  • Wellbeing
    • Mental Health
    • Health & Wellbeing
    • Financial resilience
  • ESG

No Result
View All Result
  • Home
  • News
  • In Depth
  • Profile
  • Pensions
    • Auto-enrolment
    • DB
    • DC
    • Defaults
    • Investment
    • Master Trusts
    • Sipps & SSAS
    • Taxation
  • Group Risk
    • Group Life
    • Group IP
    • Group CIC
    • Mental Health
    • Rehab
    • Wellbeing
  • Healthcare
    • Musculoskeletal
    • Mental Health
    • IPT
    • Wellbeing
    • Trusts
    • Cash Plans
  • Wellbeing
    • Mental Health
    • Health & Wellbeing
    • Financial resilience
  • ESG

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.