Pensions - Articles - Pension deficit down as PwC Skyval Index shows GBP30bn drop

 PwC’s Skyval Index, based on the Skyval platform used by pension funds, provides an aggregate health check of the UK’s c.5,450 corporate DB pension funds. The current Skyval Index figures, based on the 'gilts plus' method widely used by scheme actuaries, are:

 Assets                  Liability target                  Deficit

 £1,740bn              £1,930bn                         £190bn

 In August this year, the deficit jumped by £100bn to £340bn, its highest level since early 2018. However, according to the Skyval Index, the deficit now stands at its lowest since May, when it reached £180bn.

 Steven Dicker, PwC’s chief actuary, said: “The reduction in deficit this month is mainly due to a rally in global equity markets boosting pension fund's assets over November. The measured liabilities link to gilt yields, which have moved little over the month. The volatility, including the recent run of deficit reductions, has been due to continued economic uncertainty impacting real asset values globally and UK government bond yields in different ways at different times.”