Pensions - Articles - Steady funding improvement at the start of 2025

 The Broadstone Sirius Index – a monitor of how various pension scheme strategies are performing on their journeys to self-sufficiency – posts its latest update.

 The Broadstone Sirius Index reports its first update for 2025 which finds positive funding progression across its 50% and fully hedged schemes for January, building on the momentum from 2024 despite market volatility returning

 Funding levels for the 50% hedged scheme saw an increase from 103.4% to 103.7% in January with a £0.1 million increase in its surplus to £1.0m.

 The fully hedged scheme improved in January to a greater extent with the funding level improving from 69.4% to 69.9%. The deficit also held steady at £8.1m and through the month nudged below £8.0m, the lowest it has been since tracking started with a £10m deficit 3 years ago

 Chris Rice, Head of Trustee Services at Broadstone, commented: "As 2025 commences, it is encouraging that both of our tracked schemes have consolidated the gains made in 2024 despite a bout of market volatility mid-way through the month. The potential for a global trade war is simmering so Trustees will need to be aware of the possibility of a return to inflation and the consequent impact on funding levels. With further turbulence looking likely ahead, the 50% hedged scheme could also consider hedging strategies to lock their positive position down. There are further regulatory issues for Trustees and Sponsors of defined benefit schemes to consider in 2025, with the potential for surplus return and the new Funding Code for those schemes embarking on valuations.”