Pensions - Articles - Stability in funding as focus turns to low dependency

 The Broadstone Sirius Index found that continued market stability through January saw both its hedged and 50% hedged schemes make small improvements in funding levels and reduce deficits.

 It comes following significant volatility at the end of last year. Fully hedged schemes saw a 9 percentage point drop through the year so January marks a positive recovery, while half-hedged schemes performed well in 2022.

 Breaking scheme funding down into assets and liabilities it is clear to see that liability reductions have far outpaced falls in asset values.

 For example, the 50% hedged scheme which had £40m of assets as at January 2022 has seen that value drop to £30m as at February 2023. However, the £50m of liabilities have outpaced this decline reducing to £31m over the same period resulting in the dramatically smaller deficits that we’ve previously seen.