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Pension scheme funding remains steady in August – Broadstone

The growth-focused scheme’s funding level rose from 94.1% at the end of July to 94.2% at the end of August, while the matching-focused scheme’s funding level fell from 89.9% to 89.8%. 

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Funding levels for two pension scheme strategies remained broadly unchanged during August 2026, according to the Broadstone Sirius Index.

The index tracked a growth-focused scheme and a more conservative matching-focused scheme against a low-dependency basis. 

Both started 2026 with a funding level of 90%.

The growth-focused scheme’s funding level rose from 94.1% at the end of July to 94.2% at the end of August.

Its funding level stayed within a 0.6% range during the month.

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The matching-focused scheme’s funding level fell from 89.9% to 89.8%. 

It remained within a 0.4%  range.

Andy Knight-Stephens, investment director at Broadstone, said: “August saw gilt yields reach levels not seen for decades. 

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“The move was part of a broader global government bond sell-off, driven by persistent inflation concerns and renewed focus on fiscal sustainability.

“Growth assets, particularly equities, delivered positive returns over August, with most major equity markets advancing in Sterling terms, despite the continued uncertain macroeconomic backdrop.”

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Knight-Stephens added: “Pension schemes will have seen mixed results over the month depending on their composition of fixed and inflation-linked liabilities and approach to investment strategy.

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“Looking ahead we could see collateral calls for LDI arrangements, and schemes should consider asset allocation rebalancing needs in light of recent growth and matching asset performance.”