Stock market rout sparks £24 billion pension deficit rise in four weeks

Tumbling stock markets in December triggered more woes for FTSE 350 finance chiefs after pension scheme deficits ballooned by £24 billion in just four weeks.

The combined deficit for pension schemes attached to the biggest 350 listed firms in Britain hit £41 billion at the end of 2018, up from £17 billion a month earlier.

Overall the deficit was up 28% year on year in 2018, said pensions consultant Mercer, which published the figures.

The increase is a blow for chief financial officers, given FTSE 350 schemes were in the black between May and September. UK stock markets were routed in the final month of 2018.

Mercer put the combined value of assets at the end of the year at £747 billion, down from £766 billion, as liabilities fell £10 billion to £788 billion.