Barnett Waddingham (BW)has shared its latest analysis of the DB End Gauge index showing that the average time to buyout for FTSE350 DB pension schemes has fallen to 5.2 years as of 31 October 2024.
Simon Taylor, Partner and Head of Employer DB Consulting at Barnett Waddingham, said: “Throughout October and on the lead up to the Autumn Budget, gilt yields and swap rates were on the rise. This reflected concerns of fiscal rule changes and increased government expenditure, borne out during the Chancellor’s delivery of Labour’s borrowing plans. Rates continued to rise post Budget, with the 15-year gilt yield sitting at 4.80% at 31 October 2024, up from 4.45% at the end of September.
“This contributed to a decrease in the DB End Gauge index of 6 months – the biggest monthly drop seen since February - despite an offsetting impact of a rise in expectations for future inflation and poor asset returns over the month.
“The DB End Gauge index offers valuable insights into pension scheme journeys, highlighting the importance of robust strategies with monitoring and trigger points.”
You can follow the index here.
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