Discretionary increases could add £8bn to DB liabilities

Schemes may face ‘difficult decisions’ on if to grant inflation-driven discretionary increases

Holly Roach
clock • 3 min read
UK inflation accelerated to a 30-year high last month
Image:

UK inflation accelerated to a 30-year high last month

Inflation-driven discretionary increases could add £8bn to liabilities across private sector defined benefit (DB) schemes if inflation remains at current levels, according to Aon.

The insurer argued rising inflation "raises questions" on discretionary increases for UK schemes and warned schemes may face "difficult decisions" later this year around whether to grant inflation-...

To continue reading this article...

Join Professional Pensions

Become a Professional Pensions Lite Member today

  • Three complimentary articles per month covering the latest real-time news, analysis and opinion from the industry
  • Receive important and breaking news stories via our two daily news alerts
  • Hear from industry experts and other forward-thinking leaders

Are you a trustee, investment consultant or in-house pension and benefit scheme professional? You can apply for full complimentary access here

Join now

 

Already a Professional Pensions
member?

Login

More on Industry

'Pound for Pound' initiative unveiled amid debate on shift from cost to value in DC

'Pound for Pound' initiative unveiled amid debate on shift from cost to value in DC

Roundtable discussion looked to inform the impending consultation on VfM metrics

Jonathan Stapleton
clock 23 July 2025 • 3 min read
Aviva launches guided retirement product for workplace members

Aviva launches guided retirement product for workplace members

Uses blended approach combining drawdown strategies with a later-life annuity

Holly Roach
clock 23 July 2025 • 2 min read
Professional Pensions DB Summit: TPR's David Walmsley to deliver keynote speech

Professional Pensions DB Summit: TPR's David Walmsley to deliver keynote speech

Event will take place on 2 October at Rudding Park in Harrogate

Professional Pensions
clock 23 July 2025 • 1 min read
Trustpilot