Pension scheme funding improvements continue

The continued rise of gilt yields (UK government bonds) is benefitting the funding levels of the Creatingbetteroutcomes pension scheme. In the last week, the increases in funding were also boosted by a rise in Equities.

Over the last week medium and long dated yields rose by around 8bps p.a. Equity markets also rose by between 1 and 2%. Both of these factors offset a small fall in Index-Linked yields.

The result is that all of the strategies are now showing improvements of between 4 and 11% since the start of 2021, with the 75% equity strategies showing the largest improvements.