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The Actuary The magazine of the Institute & Faculty of Actuaries
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Rollercoaster month for FTSE350 pension deficits

Data from the Aon Hewitt 350 Index showed that the collective final salary pensions accounting deficit of the UK’s FTSE 350 companies stood at £38bn on 27 July, which was down from the figure of £44bn at the end of June.

However, on the back of increased investor confidence, at the beginning of July there was a significant improvement of over £17bn, leaving the deficit level at £27bn on 7 July. Yet on 18 July, the combined deficit stood at £45 billion following an £18bn reversal as investors sought safety.

Marcus Hurd, principal and actuary. Aon Hewitt, said: “Schemes can use these swings, whether caused by changes in asset or liability values, to de-risk. They can lock in the improvements to funding levels through reductions in allocations to higher risk assets and greater hedging.”