DB schemes face ILG shortage of £500bn

Natasha Browne looks at the effects of an index-linked gilt shortage and asks how else schemes can hedge against inflation

clock

Defined benefit (DB) pension schemes face an index-linked gilt (ILG) shortage of £500bn within a decade if deficits continue to close and the appetite for buyouts persists.

According to a report from Pension Insurance Corporation (PIC) and Fathom Consulting, the proportion of ILGs issued would need to increase from 25% to 75% over this period to meet demand. This i...

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

Partner Insight: When markets narrow, opportunities broaden

Partner Insight: When markets narrow, opportunities broaden

Navigating equity concentration through systematic breadth

Robeco Institutional Asset Management
clock 30 March 2026 • 6 min read
Mobius adds venture capital British Co-Investment Fund to platform

Mobius adds venture capital British Co-Investment Fund to platform

Provides UK schemes with access to VC through Future Planet Capital managed fund

Jonathan Stapleton
clock 27 March 2026 • 2 min read
Church of England Pensions Board to vote against 'climate backtracking banks'

Church of England Pensions Board to vote against 'climate backtracking banks'

Board says move reflects 'longstanding commitment' to act on systemic risks

Michael Holder
clock 26 March 2026 • 5 min read
Trustpilot