Insights from Aon's Accounting Strategy Team

Review of 2018 and actions for 2019

Insights from Aon's Accounting Strategy Team

2018 was another rollercoaster year for pension schemes. In the middle of the year, the FTSE 350 was in a sustained IAS 19 surplus position for the first time in 10 years, peaking at almost 105% funded, but despite this, the year ended almost exactly as it began at just below 100%.

Meanwhile the aggregate buyout deficit in the FTSE 350 increased for the second year in a row to over £300Bn. Perhaps the most interesting dynamic, though, is the continuing divergence of performance between the best and worst funded pension schemes – by the end of the year, the best were above 117% funded and the worst were below 70% funded. The chart below shows the aggregate pension scheme assets and liabilities of the FTSE 350, and how this changed over 2016, 2017 and 2018.

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