Demand for inflation hedging to lead to £200bn scheme loss

Negative real returns coupled with RPI reform mean schemes will see a big impact

James Phillips
clock • 2 min read
Demand for inflation hedging to lead to £200bn scheme loss

Pension schemes are facing losses of up to £200bn as their search for inflation protection drives them to negative real returns ahead of reform, PwC analysis finds.

Around £550bn of defined benefit (DB) scheme assets are tied up in gilt investments but with another £1.25trn of DB assets within the universe, this is leading to supply and demand issues. Conse...

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James Phillips
Author spotlight

James Phillips

Professional Pensions journalist from 2016-2022

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