XPS Pensions Group estimates that the aggregate DB funding level increased to 111% over the month of July. The aggregate surplus of UK pension schemes now stands at approximately £145bn. |
Long-term gilt yields finished the month where they started, with the announcement of unexpectedly low inflation figures during July reversing the gilt yield rises experienced at the start of the month. The net effect of this is that aggregate scheme liabilities are at a similar level to the previous month. However, aggregate scheme assets were up over the month, leading to a slight increase in the large surpluses many schemes have recently built up. Across July 2023, UK pension schemes’ funding positions have risen by c.£12bn against long-term funding targets. Based on assets of £1,430bn and liabilities of £1,285bn, the aggregate funding level of UK pension schemes on a long-term target basis was 111% as of 31 July 2023.
Charlotte Jones, Senior Consultant at XPS Pensions Group said: “Despite the UK facing significant economic challenges, defined benefit pension schemes have remained robust and aggregate funding has increased. Long-term gilt yields have fallen by around 0.13% since the encouraging inflation announcement in the middle of July, with expectations of future interest rate rises being pared back. The Bank of England’s decision to raise interest rates by 0.25% last week confirms this belief, with many analysts previously expecting a larger, 0.5% rise would be required. However, given the uncertain nature of future inflation and interest rates, schemes should consider their hedging levels to ensure any positive funding positions are locked-in.” |
|
|
|
Pensions Data Science Actuary | ||
Offices UK wide, hybrid working - Negotiable |
Head of Pricing | ||
London - Negotiable |
Global Specialty Pricing Actuary | ||
London - £95,000 Per Annum |
Client-facing DC investment manager | ||
London / hybrid 3 dpw office-based - Negotiable |
Financial Risk Leader - Bermuda | ||
Bermuda - Negotiable |
Aylesbury Actuaries | ||
Aylesbury / hybrid 3dpw office-based - Negotiable |
Make an impact in protection pricing ... | ||
London / hybrid 2 days p/w office-based - Negotiable |
BPA Implementation Manager | ||
North / hybrid 50/50 - Negotiable |
Head of Reserving | ||
London - £160,000 Per Annum |
In-force Longevity Actuarial Analyst | ||
London / hybrid 2 dpw office-based - Negotiable |
Make a difference within reinsurance ... | ||
London / hybrid 2 dpw office-based - Negotiable |
Be at the cutting-edge of life & heal... | ||
London / hybrid 2 dpw office-based - Negotiable |
Longevity Pricing Analyst | ||
London / hybrid 2 dpw office-based - Negotiable |
Develop your career in life reinsuran... | ||
London / hybrid 2 dpw office-based - Negotiable |
Protection Pricing Actuary - Life Rei... | ||
London / hybrid 2 dpw office-based - Negotiable |
Life (Re)insurance Pricing Manager (P... | ||
London / hybrid 2 dpw office-based - Negotiable |
Take the lead: life & health reinsura... | ||
London / hybrid 2 dpw office-based - Negotiable |
Pricing Tools and Systems Developer | ||
London / hybrid 2 dpw office-based - Negotiable |
Longevity Pricing Actuary | ||
London / hybrid 2 dpw office-based - Negotiable |
Shape the future of longevity | ||
London / hybrid 2 dpw office-based - Negotiable |
Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.