Page last updated at 10:01 GMT, Tuesday, 11 May 2010 11:01 UK

Pension schemes back into deficit

Notes and coins
Pension funds tend to fluctuate month on month

The UK's private sector final-salary pension schemes fell back into deficit by the end of April after being in surplus a month earlier.

The Pension Protection Fund (PPF) said the 7,400 pension schemes had a total deficit of £2.2bn.

This came after the schemes had moved into a surplus of £0.3bn in March - the first month in positive territory since June 2008.

However, a year ago the deficit had stood at £188bn.

The number of schemes in deficit rose slightly in April, with 69% of schemes in deficit.

Share prices

The PPF said rising share prices meant the funds' assets had been rising in the last year ahead of the cost of paying for pensions.

However, in April, these share prices dipped, leading to the worsening in the funds' position.

Last October, the PPF changed the way it calculated the likely cost of paying for pensions in the future - leading to a reduction in the calculation of funds' liabilities.

The figures come as Aviva announced that its life and pension sales reached £2.56bn in first three months of 2010, an increase of 14% on the previous quarter and in line with the same period a year ago.

Print Sponsor

The BBC is not responsible for the content of external internet sites

Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit


Sign in

BBC navigation

Copyright © 2019 BBC. The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.

Americas Africa Europe Middle East South Asia Asia Pacific