Pensions - Articles - Long term pension targets 100 percent funded for 1st time

 Deficits of UK pension schemes have decreased by c.£69bn over the month to 31 August 2022 against long-term funding targets, an analysis from XPS’s funding tracker XPS DB:UK has revealed. Based on assets of £1,623bn and liabilities of £1,620bn, the aggregate funding level of UK pension schemes on a long-term target basis was 100.2% as of 31 August 2022.

 Tom Birkin, Actuary at XPS Pensions Group said: “The DWP launched its long-awaited consultation on DB funding rules and long-term funding objectives at the end of July. However, with the average UK pension scheme now fully funded on a long-term basis, there may not be as many schemes having to take drastic action as a result of the new regulations as once thought. Now is an excellent opportunity for schemes to consider their investment strategies to ‘lock in’ these significant gains and to think about what the ultimate end-game for the scheme might be. This is good news for pension scheme members as securing members benefits is within reach for more schemes than ever before.”