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Pension funds deeper in deficit

The financial shortfall for pension funds worsened in June, according to official figures.

Data from the Pension Protection Fund (PPF) revealed that last month the UK’s 7,400 defined benefit schemes were suffering a deficit of £200.1 billion.

The figure for the end of May was £179.3 billion.

Of the schemes surveyed by the PPF, some 87 per cent were experiencing a funding shortfall. In June, barely 900 of the 7,400 schemes had a surplus of funds.

Many funds have been adversely affected by a slide in the value of assets and a rise in liabilities. Deflation has also had a negative impact on pension funds, with the Retail Prices Index falling to -1.6 per cent last month.