Defined Benefit Pensions Outlook – Q1 2022

UK Defined Benefit (DB) scheme funding edged higher over the last quarter, to 108%.1 Liabilities and assets both rose around 3% in aggregate, with growth asset returns marginally outpacing the impact of lower bond yields.
However, there is significant dispersion with 41% of schemes remaining in deficit¹. This dispersion is likely to have been exacerbated by the sharp rise in interest rates and fall in equity values following year end.
We expect significant de-risking activity in 2022, as schemes progress towards their long-term objective.
In our latest outlook we discuss:
- The de-risking outlook for Defined Benefit pension plans
- Our current views on global market conditions and key factors influencing a CDI (Cashflow-Driven Investing) strategy
- The outlook for key fixed income, private markets and alternative strategies