UK pension deficit increases by £60bn in December, according to PwC Skyval Index figures

Jan 09, 2019

New figures released today from PwC’s Skyval Index show the deficit of defined benefit (DB) pension funds stood at £290bn at the end of December 2018, up £60bn from the deficit 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

£1,560bn    

£1,850bn

     £290bn

Steven Dicker, PwC’s chief actuary, said: 

“The end of November saw a temporary peak in bond yields, which has since reversed. This reversal, combined with a fall in assets, has increased the deficit over December.

“Additionally, most schemes’ pension liabilities will increase following the High Court Judgement in late October that means UK pension schemes are now required to equalise Guaranteed Minimum Pensions (GMP) between men and women.

“While the impact will vary for different schemes, the ruling could increase liabilities by 0.5% or more. The increase in the Index over the month allows for an estimate of the GMP equalisation liability."

About PwC

At PwC, our purpose is to build trust in society and solve important problems. We’re a network of firms in 158 countries with more than 250,000 people who are committed to delivering quality in assurance, advisory and tax services. Find out more and tell us what matters to you by visiting us at www.pwc.com.

PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details. © 2018 PwC. All rights reserved

Contact us

Media Enquiries

Press office, PwC United Kingdom

Tel: +44 (0)20 7213 1768

Follow us