UK pension deficit falls to £510bn

According to PwC’s Skyval Index

New figures released today from PwC’s Skyval Index show the deficit of defined benefit (DB) pension funds stood at £510bn at the end of May 2017, a £20bn decrease since last month (see note to editor).

PwC’s Skyval Index, based on the Skyval platform used by pension funds, provides an aggregate health check of the UK’s c.5,800 DB pension funds.  The current Skyval Index figures are:

	Assets	Liability target	Deficit	Deficit change since last month
Funding measure (current)	£1,550bn	£2,060bn	£510bn	£20bn decrease
Funding measure adjusted for reduced life expectancy projections	£1,550bn	£1,780bn	£230bn	£10bn increase

Steven Dicker, PwC’s chief actuary, said: “Despite continuing political uncertainty, equity markets are at an all time high, which has helped to reduce the deficit. 

“Whether the improvement in funding will be sustained in the short term is more questionable, and continued volatility seems likely.”