The value of assets held in UK funded pensions was £2,040.7bn in 2011, the Office of National Statistics showed in its Pension Trends report.

The report shows assets reached 135 per cent of GDP, following strong growth since 2009, driven by increases in employers’ special contributions, such as deficit payments. Self administered pension funds – mostly defined benefit occupational schemes – accounted for 71 per cent of the total pensions assets.

Over 20 years from 1992 to 2012, the analysis showed that employee contributions to self-administered pension funds have remained flat. However, employers’ normal and special contributions have risen from under £5bn in 1992 to £25.5bn in 2012. Employers’ special contributions increased from 1999 to peak at £13.2bn in 2006, before falling to £11.9bn in 2007 and £6.8bn in 2008. They have since risen again, reaching £19.4bn in 2012.

The analysis also shows the aggregate funding position of schemes in the Pension Protection Fund (PPF) 7800 index moved from a surplus of £50.1bn in January 2011 to a deficit of £317.0bn in May 2012, measured against the cost of buying PPF levels of compensation with an insurer. As of February 2013, the deficit stands at £201.5bn.

The analysis is one of two chapters in the Pension Trends series released today. The other, its chapter on Saving for retirement, showed stark differences in savings levels between defined benefit scheme members and those in defined contribution schemes.

Figures for 2008-10, show pension saving made up 79 per cent of total aggregate saving in households headed by those aged between 50 and 64. However, median defined benefit pension saving was £177,900 while for defined contribution schemes it was just £29,000. The top 10 per cent of savers have about eight times as much as the bottom five deciles combined, it showed.

Commenting on the report, Barnett Waddingham consultant Malcolm McLean said: “The ONS findings confirm the big disparity between the ‘haves’ and the ‘have nots’ when it comes to overall pension saving ratios.”

He added: "It is good to note that the safest perceived way to save for retirement is through an employer’s scheme and that gives hope that the current auto-enrolment programme will yield positive results - in terms of the numbers contributing at least – and that may result in better value saving through defined contribution schemes boosted by employer contributions over time. “

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