DB schemes face ILG shortage of £500bn

Natasha Browne looks at the effects of an index-linked gilt shortage and asks how else schemes can hedge against inflation

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Defined benefit (DB) pension schemes face an index-linked gilt (ILG) shortage of £500bn within a decade if deficits continue to close and the appetite for buyouts persists.

According to a report from Pension Insurance Corporation (PIC) and Fathom Consulting, the proportion of ILGs issued would need to increase from 25% to 75% over this period to meet demand. This i...

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