The UK's 200 largest pension funds have plugged their collective deficits by around £100bn (€147bn) over the last four years as a result of surging equity markets and rising bond yields.

Research by Aon Consulting shows that pension fund shortfalls currently stand at £3bn, and have fallen £31bn this year. Deficits are at their lowest level since the FRS17 accounting standard, which requires schemes to mark assets and liabilities to market, was introduced six years ago.