October sees jump in UK pension deficit according to PwC’s Skyval Index

Nov 01, 2018

New figures released today from PwC’s Skyval Index show the deficit of defined benefit (DB) pension funds stood at £230bn at the end of October 2018 compared to a deficit of £150bn at the previous month end.

PwC’s Skyval Index, based on the Skyval platform used by pension funds, provides an aggregate health check of the UK’s c.5,600 corporate DB pension funds.  The current Skyval Index figures, based on the 'gilts plus' method widely used by scheme actuaries, are:

Assets

Liability target

    Deficit

£1,590bn    

£1,820bn 

    £230bn

Steven Dicker, PwC’s chief actuary, said:  

“The deficit in the UK pension schemes has shot up by more than 50% to £230bn over October, mainly due to falling asset values and a decrease in gilt yields that increased the liabilities.

“As well as reflecting continued uncertainty in markets, this rapid reversal of recent improvements also highlights the volatility inherent in this approach to measuring scheme funding.”

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