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

Martin Richmond
Author spotlight

Martin Richmond

Reporter at Professional Pensions

More on Pensions

Salary sacrifice change to 'hit' more than three million workers

Salary sacrifice change to 'hit' more than three million workers

Government releases impact assessment

Jen Frost
clock 05 December 2025 • 3 min read
Andrew Tully: Plummeting pensions confidence is 'siren call' for wide-reaching action

Andrew Tully: Plummeting pensions confidence is 'siren call' for wide-reaching action

'We're seeing a deep erosion of trust in the retirement system'

Andrew Tully
clock 05 December 2025 • 3 min read
When is a SIPP not a SIPP? Time for a terminology rethink

When is a SIPP not a SIPP? Time for a terminology rethink

'I would suggest that it’s time to review the use of the term SIPP,'

Caitlin Southall
clock 01 December 2025 • 4 min read