Pension pots sitting relatively pretty

THE funding levels of the UK's biggest pension schemes have improved dramatically during the past year, despite stock market volatility, figures out yesterday revealed.

The UK's 200 largest defined-benefit pensions, which include final salary schemes, collectively had an £11 billion surplus at the end of March, compared with a £27bn deficit a year earlier, according to Aon Consulting.

The group said the impact of stock-market falls had been dampened by rising corporate bond yields, which are used to calculate pension scheme liabilities.