By Jack Gray
Source: Pensions Age
The health of defined benefit (DB) schemes in the UK reached a “new high” in Q4 2021, with the typical scheme expected to be able to fund 98.4 per cent of accrued pension benefits, according to Legal & General Investment Management (LGIM).
The typical scheme being able to fund 98.4 per cent of accrued benefits, as at 31 December 2021, was 0.1 percentage points higher than the 98.3 per cent figure recorded at the end of Q3 2021.
LGIM noted that the health of DB schemes had been gradually improving since March 2020, when it had dropped to as low as 91.4 per cent due to the immediate impact of Covid-19 on financial markets.
Furthermore, although the latest figures demonstrated “continued improvement”, LGIM warned that the next 12 months will be crucial for schemes and other investor groups due to the move into an era of tighter monetary policy.