Pension fund deficit increased in top 200 companies after July share price slump

The July downturn in share prices has increased the deficit at the UK’s largest 200 pension schemes – although 30% remain in surplus.

The market fell so much on 26 July alone that it wiped £9bn off the balance sheets of the top 200 pension funds.

This pushed the aggregate deficit of those firms up to £13bn after two months where it hovered near zero, according to Aon Consulting.

However, three in 10 of the largest 200 UK pension funds – and 40% of FTSE 100 companies’ schemes – remain in surplus.

Marcus Hurd, senior consultant and actuary at Aon Consulting, said: “It is increasingly apparent that UK plc is divided between those with pension schemes in surplus and those with schemes in deficit.”