The aggregate surplus of defined benefit (DB) pension schemes remained "relatively stable" in August, despite a slight fall from £475.5bn to £475bn, the Pension Protection Fund’s (PPF) latest 7800 Index has revealed.

The update showed that the funding ratio also fell from 148.5 per cent at the end of July to 148.2 per cent at the end of August, as the 0.3 per cent increase in total assets, to £1,460.1bn, was offset by a 0.5 per cent increase in total liabilities, to £985.1bn.

In addition to this, the number of schemes in deficit rose from 461 to 463, while the deficit of the schemes in deficit at the end of August 2024 was £3.5bn, up from £3.4 billion at the end of July 2024.

However, the index showed that, despite the recent dip, the overall DB funding position has improved from a year ago, with a surplus of £426.7bn recorded at the end of August 2023, and a funding ratio of 146.4 per cent at the same time last year.

In addition to this, the index showed that whilst total scheme liabilities have increased by 7.1 per cent over the year so far, total scheme assets have experienced an increase of 8.4 per cent over the year.

Commenting on the update, PPF chief actuary, Shalin Bhagwan, said: “Our 7800 Index update paints a relatively stable picture of the UK DB universe this month, with a very slight decrease in the estimated aggregate surplus of the 5,050 schemes, falling from £475.5bn at the end of July 2024 to £475bn at the end of August 2024.

“Although the first two weeks of August were volatile for financial markets, by the end of the month most asset classes were back to similar levels to where they ended in July, resulting in fairly small moves in both asset and liability values.

“This is reflected in the funding ratio decreasing from 148.5 per cent at the end of July 2024 to 148.2 per cent, and the deficit of the schemes in deficit at the end of August 2024 going up to £3.5bn from £3.4bn at the end of July 2024.”

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