Stock market malaise leads to £25bn pensions deficit
Market upheaval puts the UK's top 200 companies under the cosh, as pension funds plummet from a net surplus position into deficit
Blue-chip companies’ pension funds have nosedived from a surplus position
into a £25bn deficit as a result of the current stock market crisis.
The UK’s top 200 companies have taken a battering because 57% of their assets
are held in shares.
Bond yields have offset the stock market freefall, and pension fund trustees
are shifting more of their assets from equities into the lower risk area.
Actuaries Lane Clark and Peacock calculated that £15bn has been moved from
equities to bonds.