DB deficits double to £0.8trn since 2006

High life expectancy and low returns to blame

clock • 1 min read

The shortfall of defined benefit (DB) schemes has risen from £425bn to £800bn in nine years, despite employers trying to plug the gap.

JLT Employee Benefits' analysis of private sector DB schemes said this was mainly down to higher life expectancy and low expected returns from investment. Scheme assets grew from £0.65trn on 31 March 2006 to £1.3trn on 31 March 2015 while liabilities rose from £1.1trn to £2.1trn. The rise in longevity at age 65 by approximately two years between 2006 and 2015 has added £135bn to liabilities. Despite employers making £160bn in contributions, deficits have collectively doubled during that period. The consultancy also calculated that schemes face a funding gap of £2.3trn in terms of t...

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