Defined benefit (DB) pension scheme funding levels continued to improve in July 2025, despite ongoing global market uncertainty, according to the latest data from Broadstone.

The consultancy’s Sirius Index, which tracks how different scheme strategies are progressing towards self-sufficiency, reported further gains since June for both fully and partially hedged strategies over the month.

The funding level of the fully hedged scheme rose by 0.6 to 70.9 per cent at the end of July, with the associated deficit falling to its lowest level since the index began in early 2022.

Meanwhile, the 50 per cent hedged scheme saw a one percentage point increase to 107.2 per cent, with Broadstone attributing the improvement to strong growth asset performance and the scheme’s underhedged position.

The resulting surplus also reached a record high, suggesting a buy out could now be a viable option for this scheme.

Commenting on the figures, Broadstone head of trustee services, Chris Rice, said: “DB pension schemes have continued to progress their funding positively during July, in the face of global market uncertainty."

Looking ahead, he suggested that with bulk annuity insurers PIC and Just changing ownership during the month, combined with last month’s potential resolution to Section 37 issues and further funding improvements, more schemes will now be thinking again about the suitability of a de-risking transaction.

“Conversely, the continued improvement and resilience in DB funding, added to the recent consultation on surplus use, is causing many schemes to consider all future endgame options,” Rice added.

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