gilt yields

The aggregate deficit of UK private sector schemes has decreased by £33.5bn over January, research from the Pension Protection Fund shows.

The National Employment Savings Trust has cut its allocation to conventional gilts across all 47 of its retirement date funds.

The ‘no change' announcement by the Office for National Statistics has added £20bn to FTSE100 deficits as gilt market expectations for inflation increased.

Scheme deficits remained largely unchanged over the last year despite gains in asset prices, Pension Protection Fund research says.

Deficits in UK schemes remain stubbornly high as the aggregate shortfall for schemes in the PPF 7800 index rose above £250bn last month.

Research from The Pensions Regulator and Pension Protection Fund has revealed just how badly scheme funding levels have been hit by movements in financial markets.

The majority of financial directors and senior leaders say scheme deficits are hampering their business investments, research shows.

Schemes should turn to inflation-linked assets such as long-lease property and mature infrastructure to cope with an insufficient supply of index-linked gilts, say consultants.

The Universities Superannuation Scheme has announced its deficit has increased from £2.9bn to £9.8bn over the past year due to historically low gilt yields.

Rising equity markets coupled with a small increase in gilt yields helped scheme deficits improve by £2.7bn over August, according to the PPF 7800 index.