The aggregate surplus of defined benefit (DB) pension schemes fell to £232.7bn at the end of February 2025, down from £239bn at the end of January, the Pension Protection Fund’s (PPF) 7800 Index has revealed.

The update showed that both total scheme assets and liabilities rose over the month, as total assets stood at £1,124.1bn, compared to £1,125.1bn at the end of January, while the total liabilities were £891.4bn, up from £886.1bn in January.

In addition to this, the update showed that the funding ratio fell by 0.9 percentage points from 127 per cent at the end of January to 126.1 per cent at the end of February 2025.

The index also showed no change in the number of schemes in deficit, which remained at 4,969, although the deficit of schemes in deficit rose by £1.5bn from £24.1bn to £25.6bn at the end of February.

However, PPF chief actuary, Shalin Bhagwan, said that despite markets experiencing “considerable” intra-month volatility in February, in response to geo-political news and frequent announcements on tariff policy, the aggregate moves over the month were “relatively muted”.

“This resulted in little change across PPF 7800 index metrics at the month-end, with the estimated aggregate surplus falling slightly to £232.7bn, from £239bn in January, and the funding ratio edging down by 0.9 percentage points to 126.1 per cent,” he stated.

This was echoed by Broadstone senior actuarial director, Jaime Norman, who said: “Despite increasing macro-economic volatility through February, the pension scheme funding environment remains relatively muted with just a minor deterioration in funding levels.”

Norman noted it was “encouraging” that funding positions are “holding steady” but warned that with market turbulence on the march, trustees, and sponsors will have to ensure they are assessing their investment strategy to ensure they are well-protected in the next couple of months.

“For schemes that can maintain a healthy funding position, the formal entrance of another insurer into the bulk annuity market – the fourth new entrant in under two years – is evidence of the growing endgame opportunities and capacity in the de-risking market for well-prepared schemes,” he said.

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