Slightly happier New Year for UK pension deficit

Pension_old_woman_410The deficit of the UK’s 200 largest privately sponsored final salary pension schemes stood at £52bn on New Year’s Eve - a 40% improvement on the £87bn figure recorded a year before. However, this is still a long way from the £3bn surplus of 31st December 2008, according to Aon Hewitt.

In Aon Hewitt's view, although many of the conditions affecting the funding position of pension schemes remain broadly similar to this time last year, the equity market rally has eased the pain for businesses, offering a renewed sense of optimism for the New Year.

Marcus Hurd, principal and actuary at Aon Hewitt, said: “With pension scheme deficits looking more manageable, now is the time for sensible planning. Companies should ensure that they have the right risk-reward balance and consider whether they should lock in to current deficit levels or continue to play market volatility to seek extra return.” ©2011 funds europe

Executive Interviews

INTERVIEW: Put your money where your mouth is

Jun 10, 2016

At Kempen Capital Management, they believe portfolio managers should invest in their own funds. David Stevenson talks to Lars Dijkstra, CIO of the €42 billion manager.

EXECUTIVE INTERVIEW: ‘Volatility is the name of the game’

May 13, 2016

Axa Investment Managers chief executive officer, Andrea Rossi, talks to David Stevenson about bringing all his firm’s subsidiaries under one name and the opportunities that a difficult market...


ROUNDTABLE: Beyond the hype

Oct 13, 2016

The use of smart beta investing continues to grow. Our panel, made up of both providers and users, discusses what the strategy actually means, how it should be used and the kind of pitfalls that may arise when using this innovative investment technique.

MIFID II ROUNDTABLE: Following the direction of travel

Sep 07, 2016

Fund management firms Aberdeen and HSBC Global meet with specialist providers to speak about how the industry is evolving towards MiFID II.