PPF figures reveal increase in pension deficits

February 9, 2010

The total deficit of pension schemes in the UK with more liabilities than assets increased by £12.1 billion last month, a new report has shown.

Figures from the latest 7800 Index Update from the Pension Protection Fund (PPF) have revealed that the total deficit held by those schemes in deficit stood at £102.8 billion last month.

This compares to a figure of £90.7 billion, which was reported at the end of December 2009.

A rise in the country’s pension deficits could encourage a number of trustees to look at additional ways to fund their retirements.

Policies such as equity release could provide homeowners with a welcome financial boost by releasing some of the value of their property assets.

The PPF report also revealed that the amount of surplus held by those schemes with more assets than liabilities, decreased from £58.1 billion to £50.9 billion over the same period.

PPF calculates the index by measuring the balances of almost 7,400 defined benefit pension schemes.
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