Pension deficits - the doom is bull

Aon Consulting says despite a 3% rise in equity markets over three months to September, the overall pensions deficit for UK companies has worsened from £52bn to £60bn due to an increase in inflationary expectations. According to Aon, there was a 0.16% drop in long-dated index linked gilt yields over the same time period. That said, the actuary says while a recent rise in the equity market has failed to reduce FTSE 100 companies' overall pension deficit, research suggests the current UK company pensions deficit could be reduced by a third – from £60bn to £41bn – before the end of the yea...