DB funding is being hit with perfect storm of lower returns and yields

As falling yields lower funding levels, PP finds DB schemes are in a predicament.

Stephanie Baxter
clock • 5 min read

Gilt yields have fallen on the back of January's market jitters and rate rise expectations have been pushed back again. This coupled with lower returns does not bode well for DB schemes, finds Stephanie Baxter

At a glance DB funding levels have fallen since the end of 2015 Schemes will have to cope with low yields and lower equity returns 2016 valuations will be challenging and sponsors ...

To continue reading this article...

Join Professional Pensions

Become a Professional Pensions Lite Member today

  • Three complimentary articles per month covering the latest real-time news, analysis and opinion from the industry
  • Receive important and breaking news stories via our two daily news alerts
  • Hear from industry experts and other forward-thinking leaders

Are you a trustee, investment consultant or in-house pension and benefit scheme professional? You can apply for full complimentary access here

Join now

 

Already a Professional Pensions
member?

Login

More on Investment

Ocean degradation threatens adequacy of retirement outcomes

Ocean degradation threatens adequacy of retirement outcomes

IFoA report says ocean-related shocks can ‘cascade’ through society and the economy

Martin Richmond
clock 10 November 2026 • 4 min read
BlackRock launches protected equity strategy for UK pension schemes

BlackRock launches protected equity strategy for UK pension schemes

Fund aims to maintain exposure to equity growth while managing downside risk

Jonathan Stapleton
clock 09 November 2026 • 2 min read
Climate warming scenarios could hit pension fund returns by up to 30%

Climate warming scenarios could hit pension fund returns by up to 30%

Analysis reveals uneven impact across UK schemes and urges funds to consider risk

Alex Levy
clock 09 November 2026 • 3 min read
Trustpilot