The aggregate surplus of the 4,969 schemes in the PPF 7800 Index dipped by £2.2bn through August 2025, decreasing from £241.1bn to £238.9bn in surplus.
The funding ratio rose by 0.4 percentage points to 128.1% and the number of schemes in surplus fell to 3,638 but still represented nearly three-quarters (73.2%) of all schemes in the universe.
“August was characterised by notable increases in gilt yields whilst equity valuations also improved,” said Jaime Norman, Senior Actuarial Director at leading independent financial services consultancy Broadstone.
“While the surplus saw a notional dip, the overall picture remains of an extremely healthy defined benefit pension scheme environment with many already locking in the gains to their funding position.”
Aggregate scheme liabilities fell, however, thanks to recent events in the bond markets.
“A surge in yields on long-dated gilts, reaching highs not seen since the late 1990s, saw estimated scheme liability values drop by 2.2 per cent. The corresponding drop in the price of gilts was tempered by steady improvements in equity markets, resulting in a 1.9 per cent decrease in estimated scheme asset values. The net impact of which was a slight improvement in the scheme funding ratio, up by 0.4 percentage points to 128.1 per cent,” said Shalin Bhagwan, PPF Chief Actuary.
“Market volatility remains present so trustees must continue to monitor their funding position and investment strategies to ensure they can achieve their long-term objectives.”
