Retirement schemes in the FTSE 350 had an aggregate funding level of 97% at the end of last year, after their total deficit fell from £50bn (€66bn) to £13bn over the last year. However, insured buyouts of their pension funds are still well beyond the reach of most companies in the index.

The current funding level of pension schemes in the FTSE 100 is 98%, with an aggregate deficit of £9bn, despite extreme market volatility over the last six months, according to research by investment consultants Mercer. The decrease in liabilities due to increasing bond yields, as well as seven new entrants in the FTSE 100, has had an impact on funding levels.