Companies in the UK are staring down the barrel of a record pension deficit approaching £1 trillion, thanks to a collapse in gilt yields following the country's vote to leave the European Union last week, according to pensions consultants.

The consultancy Hymans Robertson, which advises many UK pension funds on funding and strategy, said in a note on June 29 that the collective pension deficit in the country has risen by £110 billion since Thursday's referendum, to hit £935 billion on June 27.