PwC Skyval Index July data shows £20bn increase in UK DB pension deficit

Jul 31, 2019

New figures released today from PwC’s Skyval Index show the deficit of defined benefit (DB) pension funds stood at £240bn at the end of July 2019 - a £20bn increase from the previous month. 

PwC’s Skyval Index, based on the Skyval platform used by pension funds, provides an aggregate health check of the UK’s c.5,450 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

£1,720bn     

£1,960bn

    £240bn

 

Steven Dicker, PwC’s chief actuary, said:

“July saw another drop in bond yields, and the corresponding increase in liabilities has not been offset by the rise in assets. This once again highlights the disconnect between assets and liabilities in the valuation of pension schemes.”

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