Defined benefit (DB) pension schemes in the UK have notched up a fifth consecutive month of funding improvements, according to Broadstone’s latest Sirius Index, despite a backdrop of economic and political uncertainty.

The index, which tracks the performance of different scheme strategies on their journey to self-sufficiency, found that both fully and partially hedged schemes made further progress in September as asset growth continued to outpace liability increases.

The funding level of a fully hedged scheme rose from 71.1 per cent at the end of August to 71.6 per cent at the end of September.

For a 50 per cent hedged scheme, the figure increased more sharply, from 109.0 per cent to 109.7 per cent.

Broadstone said the results underlined a sustained run of improvements since April, with schemes maintaining momentum despite a backdrop of economic and political uncertainty.

Commenting on the findings, Broadstone head of trustee services, Chris Rice, said the consistency of recent progress was encouraging for both scheme sponsors and trustees.

“Since a volatile April, DB pension scheme funding has been on a steady upward trajectory through the summer,” he explained.

“That has translated into good progress in 2025 to date for most schemes, particularly those that are not fully hedged.”

However, Rice cautioned that this steady improvement should not lead to complacency.

“There continues to be economic and political uncertainty,” he added.

“While schemes have weathered this well so far, upcoming trustee meetings and the forthcoming UK Budget offer a good opportunity to take stock, check funding progress and look for ways to strengthen resilience.”

The update follows last month’s analysis from Broadstone, which found that record-high gilt yields were helping to drive funding gains across DB schemes, pushing many closer to self-sufficiency or buyout positions.

The improvements have led Hymans Robertson to argue that DB schemes should take advantage of the sharp improvement in funding levels and consider the strategic value of a ‘purposeful pause’ in their endgame planning, warning that funding progress carries the risk of schemes rushing into decisions and potentially missing opportunities.

This article was originally published on our sister title, Pensions Age.

---