DB schemes hit record health high - LGIM

Schemes expect to fund 98.5% of accrued benefits

Martin Richmond
clock • 1 min read

The health of defined benefit (DB) schemes continued to climb in the first quarter of 2022, hitting an all-time high, according to data from Legal & General Investment Management (LGIM).

According to research compiled by LGIM's DB health tracker, a DB scheme should expect to be able to fund a total of 98.5% of the scheme's accrued benefits, as of 31 March 2022. This marks a 0.1% increase in the health of DB schemes reported in Q4 of 2021 and represents the highest figure that's been recorded since LGIM began tracking the health of DB schemes in 2018. The analysis is based on the Pension Protection Fund's Purple Book assumption that a typical DB scheme holds approximately 70% in bonds/liability-driven investments, 20% in equities, 5% in property and 5% in other assets....

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

Boring Money and Wealth Wizards link to plug advice gap

Boring Money and Wealth Wizards link to plug advice gap

Strategic partnership to improve access to financial advice

Jenna Brown
clock 01 May 2024 • 2 min read
FCA tweaks rules ahead of pensions dashboard connection dates

FCA tweaks rules ahead of pensions dashboard connection dates

Firms will be COBS 19.11 compliant when they connect to CDA

Jasmine Urquhart
clock 01 May 2024 • 1 min read
Pensions campaigner and former WPC chair Frank Field dies aged 81

Pensions campaigner and former WPC chair Frank Field dies aged 81

Field was a former Work and Pensions Committee chair and a welfare champion

Professional Pensions
clock 24 April 2024 • 5 min read