UK defined benefit pension surplus exceeds £240 billion, XPS says
TLT•The aggregate UK defined benefit pension scheme surplus exceeded £240 billion as of Oct. 12, 2026. XPS said higher nominal gilt yields and strong equity markets continued to benefit most schemes' funding levels.
1. Pension funding and inflation
XPS Group's Oct. 21 analysis showed UK CPI inflation rose to 3.5% in September from 3.1% in August, broadly matching expectations. The 20-year nominal gilt yield rose above 6% for the first time since 1998. Higher oil prices increased fuel costs in September, while Ofgem's 4% energy price cap increase on Oct. 1 reinforced expectations of persistent year-end inflation.
