The average surplus of a FTSE 100 defined benefit (DB) pension scheme stood at over £550m on average at the end of 2025, with an estimated aggregate surplus of £39bn, according to an LCP report.

LCP’s sixth annual Accounting for Pensions report found that over 80 per cent of FTSE 100 companies with a UK DB pension scheme had a pension accounting surplus at their 2025 balance sheet date.

This year’s analysis suggested that tech giant Alphabet issuing more than £5bn of UK corporate bonds in February 2026 could boost pension scheme surpluses.

LCP estimated that this large-scale bond issuance could increase pension scheme discount rates by up to 0.1 per cent, meaning a lower value is placed on liabilities, resulting in larger surpluses.

The firm also said it expected closer scrutiny of how companies report pension surpluses, and that firms should clearly explain whether they expect to benefit from those surpluses.

Without clear explanations, investors and rating agencies may place little value on reported surpluses because companies have historically found it difficult to access them, LCP noted.

LCP head of corporate consulting, Gordon Watchorn, said: “We have seen a complete change in approach over the last few years from FTSE 100 companies to their DB pension schemes.

"From representing risk on their balance sheets, they are increasingly being seen as an opportunity, and they can provide meaningful support to sponsors after decades of investment for many.”

LCP partner, Luke Hothersall, added: “The gigantic spending on artificial intelligence, now approaching a trillion dollars, is having ripple effects on all parts of the economy, including a direct impact on company pension numbers.

“There are dozens of companies in the FTSE 100 alone with UK DB pension schemes big enough to make a meaningful difference to their overall financials,” he concluded.

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