Is the UK pension defecit set to worsen ?

The aggregate funding position of almost 7,400 defined benefit pension schemes in the UK has worsened over the last month, according to new figures.

This could inspire a number of people nearing retirement age to consider a lifetime mortgage as a way of securing their retirement finances.

According to the latest Pension Protection Fund index update, taking into account the total assets and liabilities of the schemes left a deficit of £2.2 billion at the end of April 2010.

By way of contrast, the calculation produced a surplus of £0.3 billion at the end of the previous month.

Data from the index showed that the total deficit of schemes with more liabilities than assets now stands at £74.4 billion, an increase of £1.1 billion when compared to the previous report.

However, this time last year the figure stood at £204.8 billion.

UK Homeowners who are concerned about the deficit levels of the UK’s pension schemes can ensure they have a regular income throughout retirement by utilising some of the value of their property assets through an equity release scheme.