Pensions - Articles - Scheme funding remains resilient as surplus hits GBP241bn


Broadstone and Gallagher comment as the aggregate surplus of the 4,969 schemes in the PPF 7800 Index increased by £10.6 billion through July 2025, rising from £230.5 billion to £241.1 billion in surplus. The funding ratio rose by 1.5 percentage points to 127.7% and the number of schemes in surplus rose to 3,684 representing nearly three-quarters (74.1%) of all schemes in the universe.

 Sarah Elwine, Actuarial Director at Broadstone, said: “July saw large gains in equity markets driving some global stock markets to all-time highs, increasing asset values and further solidifying the strong funding positions held by many defined benefit pension schemes. As we head into what is typically the busier half of the year for pension scheme de-risking, we are already seeing growing evidence of accelerating momentum in the Bulk Purchase Annuity market with several jumbo deals announced recently. Despite the cloudy outlook surrounding the UK economy, it is clear that pension scheme trustees are likely to have good variety of options to secure their members’ benefits. Whether that is through the insurance market or exploring the possibility of run-on, trustees should continue monitor their funding position and investment strategies to ensure they can achieve their long-term objectives.”
 
 Vishal Makkar, Managing Director, UK Wealth Consulting at Gallagher: “This month’s PPF 7800 Index shows a further increase in aggregate funding, with the surplus now standing at £241.1bn. It’s a clear sign that scheme funding is still resilient, supported by strong gilt yields and solid equity performance. Many schemes have taken the opportunity to lock in these gains through derisking - a smart move that has fortified their long-term positions. But while funding positions have improved, the wider pensions landscape is changing. The Pension Schemes Bill and related regulatory initiatives - including reviews of value for money in DC schemes and commission-based advice models - are pushing trustees and sponsors to rethink long-term strategy. With the state pension age rising to 67 and concerns over retirement adequacy growing, particularly for those relying on auto-enrolment alone, private pensions are more important than ever. Trustees and sponsors should use the current funding strength not just to consider further de-risking, but to try and secure better member outcomes and address wider challenges in the retirement system.”

  PPF publish PPF7800 Index update for July 2025

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