Pensions - Articles - FTSE 350 pension deficits increase despite rising yields

 Tess Page, Mercer UK Wealth Trustee Leader, said: “The cost of living may be failing to cut through politically amid the Downing Street Party rows, but inflation is certainly giving pension schemes food for thought in 2022. Investment markets also took a bit of a hit during January, with global equity prices falling back.”

 Miss Page added: “Trustees and scheme sponsors are looking ahead to a busy year in pensions, with the new Code of Practice and climate change reporting on the horizon, alongside cracking GMP equalisation and preparing for pensions dashboards. Those schemes that have already tackled their key risks around investments, inflation, and interest rates will be best-placed to navigate 2022.

 Mercer’s Pensions Risk Survey data relates to about 50% of all UK pension scheme liabilities, with analysis focused on pension deficits calculated using the approach companies have to adopt for their corporate accounts. The data underlying the survey is refreshed as companies report their year-end accounts. Other measures are also relevant for trustees and employers considering their risk exposure. Data published by the Pensions Regulator and elsewhere tells a similar story.