The pension schemes of the FTSE 100 now have an aggregate surplus relative to the accounting value of their liabilities, according to actuaries from Deloitte .

Pension deficits have fallen by £40bn since the start of the year and are at the lowest level for more than five years. The improvement has been fuelled by a strong UK equity market and falls in the prices of bonds used to measure pension scheme liabilities.

Most pension schemes invest a significant proportion (60% on average) of their assets in the stock market. The value of UK shares has increased by 9% since the start of the year.

Bond prices have fallen over the same period. Deloitte actuaries estimate that this alone has wiped around £25bn off the value of pension deficits.

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