FTSE350 Pensions Analysis report 2015
08 Oct 2015
Welcome to Hymans Robertson’s seventh annual FTSE350 Pensions Analysis report, which puts the pension schemes of the FTSE350 in the context of the businesses that support them.
Our latest report highlights the following:
- Whilst the majority of FTSE350 companies remain well placed to support their defined benefit (DB) pension schemes, with 81% of companies able to pay off their IAS19 deficit with less than 6 months earnings, pensions deficits remain volatile.
- Between July and August 2015 alone, the aggregate FTSE350 pension deficit increased from £40bn to £100bn, driven by falls in both equities and bond yields.
- Despite companies paying in £250bn since the start of the millennium, the FTSE350 aggregate deficits remain persistently stubborn.
- 50% of FTSE350 schemes are cashflow negative already or soon will be. Schemes are currently paying out £13bn a year more than they receive in contributions, with this set to rise to £50bn by 2030. Investing in assets that will deliver the income needed to pay today’s and tomorrow’s pensioners is key. Yet only 4% of schemes see this as a priority.
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