U.K. defined benefit occupational pension funds' aggregate deficit almost tripled in January to £76.5 billion ($125.7 billion), according to the Pension Protection Fund's 7800 index.
That is an increase of 177%, with total liabilities increasing 4% to £1.2 trillion and total assets decreasing 0.2% to £1.1 trillion.
The PPF 7800 index covers 6,150 pension funds. The estimated aggregate deficit of £76.5 billion at the end of January compares with £27.6 billion at the end of December, and £182.6 billion at the end of January 2013.
Funding levels also declined over the month to an aggregate funding ratio of 93.7% compared with 97.6% at the end of December, but improved from January 2013's funding ratio of 85.6%.
While assets remained broadly unchanged, the 4% increase in liabilities reflects “lower nominal and index-linked gilt yields,” the PPF said in its update.
Over January, 15-year gilt yields fell by 26 basis points, 15-year index-linked gilt yields fell by five basis points and the FTSE All-Share index dropped 3.1%, according to the PPF.
