January saw a small increase in the defined benefit (DB) funding levels of modelled schemes, according to Broadstone’s Sirius Index, building on positive progress during 2025.

The latest update revealed that the funding level of the fully hedged scheme increased from 71.6 per cent at the end of December 2025 to 71.8 per cent at the end of January 2026.

Similarly, the funding level of the 50 per cent hedged scheme increased from 108.4 per cent to 108.9 per cent over the same period, nudging closer to the record high of 110.5 per cent seen in October 2025.

The Broadstone Sirius Index uses modelled schemes’ data to monitor how various pension scheme strategies are performing as they work towards self-sufficiency.

"After a year of strong funding tailwinds, it’s encouraging to see schemes holding onto that momentum as 2026 begins,” said Broadstone head of policy, David Brooks, in reaction to the latest update.

Brooks explained that a steady funding backdrop will come as welcome relief for trustee boards preparing for valuations under a new regime.

“When volatility settles down, trustees can shift their attention from firefighting to the broader agenda – connecting to dashboards, strengthening governance through the own risk assessments, which will be prepared throughout the year, and ensuring scheme data is genuinely fit for the future,” he said.

Casting an eye to the future, Brooks added that, “if 2025 was about recovery, 2026 is shaping up to be the year trustees get the breathing space to focus on long-term improvement and setting the strategy to buyout or run-on”.

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