The average time to buyout for FTSE 350 companies’ defined benefit (DB) pension schemes increased from 5.1 years to 5.3 years in November, analysis by Barnett Waddingham has found.

The consultancy’s DB End Gauge index attributed the increase to a reduction in bond yields over the month.

FTSE 350 companies’ schemes time to buyout has remained fairly stable over the past six months, rising slightly in July and August before falling back down in September and October.

Commenting on the index’s findings, Barnett Waddingham principal, Lewys Curteis, noted that the index has ticked upwards as the end of the year gets closer, which reflected the impact of a slight reduction on scheme liability values.

“Average scheme funding positions remain very strong, however, as schemes continue to benefit from the higher yield environment,” he continued.

“The Bank of England expects interest rates to remain elevated for an extended period of time, suggesting we could be in a period of stability for pension scheme funding.

“This provides an ideal opportunity for companies and trustees to review their funding and investment strategies, and to consider the potential implications of any changes arising from this winter’s consultation regarding accessing DB scheme surpluses.”

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