The surplus of UK DB pension schemes maintained a £222bn aggregate surplus against long-term funding targets, up £2bn in September 2025 and £48bn year-on-year.
According to XPS, schemes achieved a record funding level of 124 per cent of the long-term target value of liabilities, as at 30 September 2025 with aggregate assets totalling £1,157bn and liabilities of £934bn.
XPS Group senior consultant Jill Fletcher says: “The strong funding positions of UK DB schemes looks set to continue. Many schemes are now well hedged against changes in gilt yields, which should provide stability as markets evolve. For trustees and sponsors, these surplus levels create new strategic options but also demand careful planning.
“This news follows the announcement from the Pension Protection Fund (PPF) that no PPF levies will be charged for 2025/26. Along with DB pension schemes, the PPF has also seen improvements in its funding position, amassing a surplus of approximately £14.1bn (as reported in PPF’s annual report and accounts as at 31 March 2025). This was driven by the accumulation of PPF levies collected in previous years as well as positive investment performance. The announcement will be welcome news to many schemes and their sponsors, reducing ongoing running costs.”