Inflation worries push up UK scheme deficits by £100bn

The total deficit of private sector UK defined benefit (DB) schemes increased by £100bn last month as rising inflation expectations pushed up liabilities, figures show.

According to Xafinity's corporate pension deficit tracker, the combined shortfall, estimated on an IAS19 basis, rose from £629bn to £729bn over August. This was caused by a £74bn increase in liabilities driven by a worsening outlook for price inflation, and a £26bn fall in asset values, mainly due to poor stock market performance. Xafinity corporate solutions director Hugh Creasy (pictured) said the deficit, which was equivalent to six months of the UK's gross domestic product, was too big to ignore. He said: "Pension schemes have access to a range of options for managing price inf...