Pensions - Articles - Industry comments on PPF7800 figures for November 2025

Sarah Elwine, Actuarial Director at Broadstone, said: “The PPF updates its methodology each December which this year has resulted in a small boost to the funding ratio reflecting a healthier than previously anticipated picture of defined benefit scheme funding. However, it has yet to account for the Government’s announced changes to pre-1997 indexation in the Budget which it estimates could increase universe s179 liabilities by just under 12%. This is unlikely to impact funding or route to buyout for most schemes, and the Budget announcement will undoubtedly be a boost to PPF members by protecting them against the loss of purchasing power from their pensions which had been eroded from inflation over the past three decades. Looking forward to 2026, pension schemes remain extremely well-funded by historical comparisons and trustees will be in a strong position to consider their route to endgame. The de-risking market looks set for a highly active 2026 with an increasing number of options available to schemes to achieve their long-term strategic objectives.”

 

Vishal Makkar, Managing Director, UK Wealth Consulting at Gallagher: “Despite the volatility in gilts and the broader market ahead of the Autumn Budget, the latest PPF 7800 Index shows an encouraging uplift in aggregate funding. The surplus has risen to £257.6bn, keeping with the pattern of resilience that we saw over the past few months. While speculation on the country’s fiscal outlook in the run up to the Budget did trigger a few noticeable movements in gilt yields, the UK’s DB schemes weathered some choppy waters without showing a single sign of strain. “This resilience will ensure confidence levels remain high into the New Year. The Pension Schemes Bill has now entered the report stage and will soon begin its third reading. Against an ever-changing backdrop, trustees must remain alert to the policy updates and ensure their strategies can flex to meet new regulatory demands while still seizing new growth opportunities.”