On the go: The combined deficit of defined benefit pension schemes fell by £50bn at the end of September 2019, PwC data shows.
Figures released today from PwC’s Skyval Index showed the aggregate deficit of the UK's DB schemes stood at £290bn, compared to £340bn at the end of August 2019.
The index, which provides an aggregate health check of the UK’s 5,800 DB pension funds, showed total assets improved towards the end of the month at £174bn, and liabilities fell to £203bn.
The fall in the deficit follows a £100bn jump throughout August, which saw the deficit rise to its highest level since early 2018.
The Skyval Index figures are based on the 'gilts plus' method used by scheme actuaries.
The improvement can be attributed to a small rally in gilt yields and a slight fall in inflation expectations, according to Steven Dicker, chief actuary at PwC.
He said: “However, gilt yields remain at historic lows and poorly hedged schemes will continue to feel the brunt of this volatility.
