Broadstone and Gallagher comment on the aggregate surplus of the 4,838 schemes in the PPF 7800 Index improved through July 2026, increasing by £7.3 billion to reach £271.3bn (end of June: £264.0 billion) in surplus. Over the past year, the aggregate surplus has risen by £34.1bn. The funding ratio also grew by 1.9pp from 131.1% to 133.0% at the end of July, while the number of schemes in surplus saw a small increase to 3,821 representing nearly four in five (79.0%) of all schemes in the universe.
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Sarah Elwine, Actuarial Director at Broadstone, commented:“Pension schemes continue to enjoy historically healthy funding levels as strong equity market performance drove further improvements in funding ratios. As we head deeper into the second half of the year, trustees will be evaluating how the conflict in the Middle East continues to impact expectations over the future trajectory interest rates. While competition remains intense in the de-risking market, many schemes may look to capitalise on the strength of their funding levels to secure an insurance solution that protects members benefits. However, there is continued endgame optionality for trustees, especially in regard to how they utilise surpluses, which may encourage some schemes to run-on.”
Vishal Makkar, Managing Director, UK Wealth Consulting at Gallagher comments: “The UK’s DB schemes have stood their ground and retained a strong funding position, with the aggregate surplus rising to £7.3bn. These figures reflect a healthy funding environment and an increasingly competitive risk transfer market. The PPF’s current consultation on Section 179 assumptions provides further evidence of how market conditions have evolved. Following a review which found that bulk annuity pricing has become more competitive, the PPF is proposing updates to its discount rate and longevity assumptions to bring valuations more closely into line with current buyout pricing. As schemes move into stronger funding positions, the debate is increasingly shifting towards what role DB schemes can play beyond simply securing member benefits. With the Department for Work and Pensions’ consultation on surplus rules closing on 2 September, trustees and sponsors are considering how greater flexibility around surplus could influence their long-term investment strategy. Some schemes may decide to invest into UK business projects and the wider domestic economy, particularly in instances when such investments align with their fiduciary duties and members’ interests. Although a buy-out will remain a desirable outcome for some schemes, it is not the only option. Schemes with strong governance and sponsor support may consider running on and retaining a greater flexibility on where and how they choose to invest. In any event, trustees must ensure decisions are evidence-led and focused on delivering the best outcomes for members.”
PPF 7800 Index Figures for July 2026
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