Tuesday, October 21, 2025
24.5 C
Lagos

UK Corporate Pension Plans End 2016 with $533bn Record Deficit

The total deficit of all U.K. corporate pension funds increased 4.8% to £434 billion ($533.1 billion) during December, and jumped 86.3% for the year ended Dec. 31, show data from JLT Employee Benefits.

The consultant’s latest update said the funded status of these pension funds was 77% as of Dec. 31, steady over the month. However, it dropped from 84% as of Dec. 31, 2015.

Total assets grew 3.4% compared with Nov. 30, and 18.2% compared with Dec. 31, 2015. The growth in assets was more than offset by a 3.7% increase in liabilities over the month and a 29.1% increase over all of 2016.

The 100 largest companies in the U.K. also saw their deficits grow, by 5.6% over the month and 141.4% over the year, to total £169 billion. The funded status of these pension funds remained steady over the month, at 78%, but fell from 88% as of Dec. 31, 2015.

FTSE 350 company pension fund deficits grew 5.5% over the month and 135.8% over the year to a total £191 billion. The funded status was again steady at 78% over the month, but fell from 88% as of Dec. 31, 2015.

The year has been “turbulent and tumultuous … not just for politics and markets, but also for pension schemes,” said Charles Cowling, Director at JLT Employee Benefits, in a statement accompanying the data.

“This last month we have seen a slight deterioration in deficits, but they are still below the record heights of over £500 billion recorded at the end of August, as markets rallied from Brexit and the U.S. election shocks. However, pension scheme deficits are still significantly larger than the levels at the start of the year, and there appears to be no relief in sight for companies with large pension schemes. Indeed, these figures represent a record year-end deficit position for companies and their pension schemes.”

Cowling said companies will be reaching the end of the fiscal year with accounts set to show “a marked deterioration in their year-end pension numbers. There will be instances where the pension scheme will represent a serious threat to the company’s balance sheet and, in some cases, the company’s ability to pay dividends.”

BY SOPHIE BAKER

spot_img
spot_img
spot_img

Hot this week

When Transparency Becomes Luxury: INEC and ₦1.5bn FOI Controversy

By Chike Walter Duru When the Independent National Electoral Commission...

Unity Bank Corpreneurship Challenge Beneficiaries Hit 578 as 30 More Winners Emerge

  No fewer than 578 young entrepreneurs across Nigeria have...

Polaris Bank Reinforces Commitment to Exceptional Customer Experience at Global Trade Forum in Ibadan

Chris Ofikulu, Executive Director, Retail & Commercial Banking, Polaris...

Fidelity Bank Bags Awards for Best Export, Trade Support and Innovation

  Fidelity Bank’s market leadership has been affirmed once again...

13-year-old Rhema-Love Abraham Emerges Winner of 2025 Heirs Insurance Essay Championship

L:R- Funmi Olotu, National Coordinator, National Social Safety-Nets Coordinating...

Topics

IATA: Passenger Airport Charges Double in 10 Years

The International Air Transport Association (IATA) calls on the...

First Airbus 350-1000 Makes Maiden Flight in France

The first A350-1000 took off on the 24th of...

Linkage Assurance Reports N33bn in Total Assets in Q3

Linkage Assurance Plc has grown its total assets to...

Raenest Secures $11m Series A Investment in QED-Led Funding Round

Raenest, the global multi-currency accounts platform for individuals and...

TRUMP: 7 Telecom Action Plans

Last Friday, Donald Trump was sworn in as the...

Emirates Hosts Top Abuja Travel Agents, Senior VP Restates Commitment to Nigeria

Emirates Senior Vice President, Badr Abbas and Paulos Legesse,...
spot_img

Related Articles

Popular Categories

spot_imgspot_img