Reduced risk advised as pension deficits fall 35%

Pension fund managers should be looking to derisk their portfolios while interest rates offer what may be a temporary respite from increasing deficits.

Climbing yields over the past three months have led to a 35% improvement in Irish defined benefit pension scheme deficits.

Deficits declined in the opening half of the year by 35% from about €10bn to €6.5bn at the end of June with a noticeable improvement in the second quarter in particular.