Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Moody's - Climate Risk Insurers series
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • The Actuary Issues
  • August 2013
08

DB pension deficits 'increased by £50bn last month'

Open-access content Monday 5th August 2013 — updated 5.13pm, Wednesday 29th April 2020

UK defined benefit schemes saw their deficits jump by £50bn last month, according to figures published by Xafinity Consulting today.

Scheme liabilities grew by £92bn - from  £1,672bn in June 2013 to £1,764bn last month. This was partly offset by a £42bn boost in the value of scheme assets, leaving a deficit increase of £50bn.

The total defined benefit pension scheme deficit in July 2013 was £629bn, compared with £579bn a month earlier. Last month's deficit was £42bn more than that reported in July 2012.

According to Xafinity, most of the increase in deficits from June to July 2013 was due to the fact that the equity market 'bounce back' in July was not enough to counter falling bond yields.

Hugh Creasy, director at Xafinity Corporate Solutions, said the main focus for pension scheme finances needed to be control over investment risk.

'Sponsor contributions cannot be expected to make a material impact on balance sheets, at least not in the short to medium term. The state of equity markets is more significant, but again is not the main driver.'

He suggested that deficits could be better controlled if sponsors managed the financial risks of the changing outlook for interest rates and inflation.

'Controlling these investment risks does not mean the end of the deficit, but it can mean the end of the increases in the deficit.'

This article appeared in our August 2013 issue of The Actuary .
Click here to view this issue

You may also be interested in...

Canada's soaring life expectancy 'presents DB pension challenge'

Women in Canada can expect to live to almost 90 years old and men nearly as long, posing challenges for pension fund sponsors.
Wednesday 7th August 2013
Open-access content

Over-50s opting out of auto enrolment, DWP finds

Opt-out rates from automatic pensions enrolment are highest among employees aged over 50, a government survey has found.
Thursday 8th August 2013
Open-access content

'Retirement anxiety' more a problem for young than old

Young people are more concerned than their parents about ill health and care costs in retirement, according to research published today by Scottish Widows
Monday 12th August 2013
Open-access content

Default pension fund quality mark planned

The Pension Quality Mark is to consulting on setting tough new minimum standards for the default investment funds that cover the vast majority of pension savers.
Tuesday 13th August 2013
Open-access content

Bulk annuity market performance 'best since 2008'

A total of nearly £1.7bn of bulk annuity deals were completed by UK insurers in the first half of 2013, setting the market on course for its most successful year since 2008, pension consultant Barnett Waddingham has found.
Tuesday 13th August 2013
Open-access content

DB scheme closures likely after contracting-out ends

Closure of defined benefit pension schemes is the main option being considered by pension funds to deal with the end of contracting-out in 2016, research by Aon Hewitt has found.
Friday 16th August 2013
Open-access content
Filed in
08
Topics
Pensions
Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Senior Reserving Analyst

London (City of)
Negotiable
Reference
149485

Senior GI Modeler - Capital and Planning

London (Central)
£ excellent
Reference
149436

Risk Oversight Manager

Flexible / hybrid with a minimum of 2 days per week office-based
£ excellent
Reference
149435
See all jobs »
 
 

Today's top reads

 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2023 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ