Broadstone and Gallagher comment on the aggregate surplus of the 4,838 schemes in the PPF 7800 Index edged up slightly through August 2026, increasing by £2.3 billion to reach £273.6bn (end of July: £271.3 billion) in surplus. Over the past year, the aggregate surplus has risen by £39.3bn. The funding ratio also grew by 0.4pp from 133.0% to 133.4% at the end of August, while the number of schemes in surplus saw an increase of 17 to 3,838 representing nearly four in five (79.0%) of all schemes in the universe.
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Jaime Norman, Senior Actuarial Director, Broadstone, commented: “Pension scheme funding is continuing to weather persistent volatility, with funding ratios nudging up thanks to resilient equity market performance. With the UK bond market seeing continued turbulence of late and tensions in the Middle East appearing to be a long way from resolution, trustees will be considering the implications of future interest rate calls and preparing their investment strategies for the potential of further market movements. The de-risking market remains extremely competitive but many schemes will still be looking to capitalise on funding levels to secure member benefits through the insurance market. With a growing number of options available to trustees, however, it will be important to consider all endgame options, particularly around the use of surplus, which could promote the advantages of schemes to run on.”
Vishal Makkar, Managing Director, UK Wealth Consulting at Gallagher comments: “The rise in the aggregate DB surplus to £271.3bn comes at an important moment for the pension sector. The closure of the Department for Work and Pensions’ consultation to give well-funded DB schemes greater flexibility to release surplus has laid the groundwork for a new paradigm. The overall guidelines are still taking shape, and it is possible the final iteration of the guidance will be more streamlined. In the interim, it's important that trustees continue to pursue their scheme's long-term objectives. For some schemes, a strong surplus may be a catalyst to explore their options in the buy-out market. For others, particularly those with strong governance and sponsor support, retaining the scheme and taking a longer-term approach could offer greater scope to respond to changing circumstances and investment opportunities. As the market evolves, greater freedom must be matched by strong governance. Trustees must consider a wider range of options, including longer-term investment opportunities, in a manner consistent with both their fiduciary duties and their members’ interests. Each scheme will have its own individual circumstances and objectives, and strategies should be drawn up accordingly."
PPF publish latest PPF 7800 figures for August 2026
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