The funding position of defined benefit schemes continued to strengthen in August, according to the PPF 7800 Index.
The latest index shows the estimated aggregate funding surplus of the 4,838 DB schemes increased by £2.3bn through August 2026, rising to £273.6bn.
Meanwhile, the funding ratio rose by 0.4 percentage points to 133.4% and the number of schemes in surplus rose by 17 to 3,838, meaning 79.0% of schemes in the index were in surplus at the end of August.
Broadstone senior actuarial director Jaime Norman says: “Pension scheme funding is continuing to weather persistent volatility, with funding ratios nudging up thanks to resilient equity market performance. With the UK bond market seeing continued turbulence of late and tensions in the Middle East appearing to be a long way from resolution, trustees will be considering the implications of future interest rate calls and preparing their investment strategies for the potential of further market movements.
“The de-risking market remains extremely competitive but many schemes will still be looking to capitalise on funding levels to secure member benefits through the insurance market. With a growing number of options available to trustees, however, it will be important to consider all endgame options, particularly around the use of surplus, which could promote the advantages of schemes to run on.”
