UK pension schemes' deficit hits £117bn, says PPF
The UK's pension schemes moved £117bn into the red by the end of August, according to figures from the Pension Protection Fund (PPF).
The deficit of the 6,533 final-salary schemes in the private sector had been £67.3bn at the end of July and £73.8bn in August last year.
There were 5,012 schemes in deficit and 1,521 schemes in surplus, the PPF said.
The schemes were hit by the falling value of shares in August, with the FTSE 100 having fallen by 7.5%.
Over the year, the yield - or return - from UK government bonds has also reduced. As a result, this inflated the cost of paying for pensions in the future.
However, the comparison with a year earlier was also affected by minor changes in the way the PPF calculates the figures and the assumptions used.