UK DB pension deficit remains unchanged at end of July, according to PwC Skyval Index

Aug 06, 2020

The UK defined benefit (DB) pension deficit remained at £270bn at the end of July, the same as at the end of June, according to figures released today from PwC’s Skyval Index. 

PwC’s Skyval Index, based on the Skyval platform used by pension funds, provides an aggregate health check of the UK’s 5,000+ corporate DB pension funds. 

The latest Skyval Index figures, based on the 'gilts plus' method widely used by scheme actuaries, are:

 

£ billions

Assets

   Liabilities

   Deficit

July 2020

1,780

   2,050

   270

June 2020

1,780

   2,050

   270

May 2020

1,780

   2,020

   240

April 2020

1,750

   1,960

   210

March 2020

1,640

   1,930

   290

February 2020

1,720

   1,950

   230

January 2020

1,790

   2,000 

   210

December 2019

1,740

   1,910

   170


Steven Dicker, PwC’s chief actuary, said: 

“Amid a backdrop of some lockdown measures being eased and economic activity starting to pick up, but concerns around COVID-19 remaining, the markets remained reasonably steady. As a result, both liabilities and assets of the UK DB corporate pension universe are unchanged from June.

“The long-term impact of the pandemic on the economy remains uncertain, so trustees and sponsors need to stay focused on risk management. While the overall position may have remained reasonably stable, individual schemes have fared very differently depending on how well their risk management approach and governance framework has responded to the crisis.”

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Richard Pain

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