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Pension schemes rethink the liabilities metric

Schemes face their biggest challenge since the financial crisis, as dramatic falls in bond yields push liabilities to record levels

Pension schemes rethink the liabilities metric
Photo: iStockPhoto

Pension funds are starting to re-evaluate the way they measure liabilities, as dramatic falls in bond yields have pushed liabilities to record levels, according to experts.

On a single day in August, UK pension liabilities rose by an estimated £40 billion after the 10-year gilt and corporate bond yields - which are used to measure pension liabilities - fell sharply on the back of the Bank of England's stimulus package.

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