DB pension surpluses rose by £31bn over 2025, with schemes maintaining strong funding positions throughout December according to XPS Group.
Its analysis show that surplus funds within these schemes remain at record highs.
Total schemes assets stood at £1,176bn at the end of December, compared to £962bn of liabilities, resulting in a modest month-on-month improvement to overall funding levels.
The analysis comes as Parliament continues to progress the Pension Schemes Bill, which proposes to give trustees and employers new powers to use scheme surpluses.
Scheme assets remained broadly stable in December, with modest changes to both gilt yields and inflation expectations over the month, helping to preserve the value of matching assets. However, XPS said market volatility meant that returns from growth assets were softer than expected.
Scheme liabilities also edged downward in December, again as a small rise in gilt yields was largely offset by a slight increase in inflation expectations.
XPS Group senior consultant Jill Fletcher says: “As we move into 2026, many DB pension schemes are well-funded and increasingly focused on what comes next. With the Pension Schemes Bill moving through Parliament, this year is set to be a defining moment for how the industry manages and uses surplus.”
“Careful planning will be essential to ensure that both members and sponsoring employers are able to benefit – and that strong funding positions translate into long-term value.”
