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Facts & FiguresAnnual Statistics for the Tax Year 2017/2018

Welcome to the 2017 version of our Annual Facts & Figures publication, containing key statistical data used throughout the pensions industry. As in previous years, we begin with a summary of the pensions related points from the March Budget, delivered on 8 March. This was scheduled to be the last such event to be held in the Spring, with future Budgets taking place in the Autumn (and a statement each Spring in response to the Office for Budget Responsibility’s spring forecast).

Pensions TaxationThe Budget confirmed the Autumn Statement announcement that the money purchase annual allowance (MPAA) would reduce from £10,000 to £4,000 from 6 April 2017. The MPAA applies once a member has flexibly accessed their pension benefits and wishes to make further DC contributions. It would apply whether access is before or after 6 April 2017. However, following the government’s decision to call a snap General Election, this reduction was removed from the Finance Bill as part of the ‘wash-up process’ before the dissolution of parliament. The Conservative government confirmed that, if re-elected, it would re-introduce the legislation ‘at the earliest opportunity’. The previously announced £500 exemption from income tax where pensions advice is funded by the employer, which would have applied from 6 April 2017, was also removed from the Finance Bill.

The Budget, and subsequently the Finance Act 2017, also contained a number of measures relating to overseas pensions, including the following:

• A 25% tax is introduced for transfers to Qualifying Recognised Overseas Pension Schemes (QROPS) which were requested after 8 March. The principal exemptions from the new tax are where during the 5 years following the transfer both the individual and the QROPS are in the same country; or the individual and the QROPS are in different countries, but both are in the EEA; or the QROPS is an occupational pension scheme sponsored by the individual’s employer.

• The UK residency test for the purpose of applying certain ‘member payment charges’ arising out of UK tax relieved funds is being extended from 5 years to 10 years. The new testing period will also apply in respect of certain post April 2017 transfers.

Other MeasuresOther measures included confirmation of the increase to the individual personal allowance from £11,000 to £11,500, and (except for Scottish rate taxpayers) to the higher rate threshold from £43,000 to £45,000. However it was announced that the tax-free dividend allowance will reduce from £5,000 to £2,000 from April 2018. As already announced, Corporation Tax rate reduces to 19% from April 2017 and to 17% from April 2020 and Insurance Premium Tax increases from 10% to 12% from 1 June 2017.

Aon Hewitt Facts & Figures Statistics for the Tax Year 2017/2018

The March 2017 Budget

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In this section . . .





Aon Hewitt Facts & Figures Statistics for the Tax Year 2017/2018 4

Financial Markets




Financial Markets FTSE(TM) UK Index Series

Date FTSE(TM) All-Share Index

FTSE(TM) All-Share Total Return Index

FTSE(TM) 100 Index

FTSE(TM) 100 Total Return Index

Mar 3990.00 6682.67 7322.92 6036.73Feb 3953.42 6601.66 7263.44 5969.78Jan 3858.26 6402.77 7099.15 5790.76Dec 3873.22 6424.25 7142.83 5823.91Nov 3692.40 6117.69 6783.79 5527.00Oct 3768.14 6218.71 6954.22 5640.37Sep 3755.34 6183.82 6899.33 5582.74Aug 3697.19 6080.59 6781.51 5483.94Jul 3653.83 5967.54 6724.43 5393.88Jun 3515.45 5737.47 6504.33 5214.61May 3429.77 5580.19 6230.79 4979.35Apr - 16/17 3421.70 5542.10 6241.89 4964.16Mar 3395.19 5479.77 6174.90 4894.50Feb 3345.84 5375.62 6097.09 4808.71Jan 3335.90 5332.89 6083.79 4769.44Dec 3444.26 5502.42 6242.32 4890.97Nov 3492.13 5573.15 6356.09 4976.07Oct 3484.60 5541.71 6361.09 4959.95Sep 3335.92 5293.33 6061.61 4715.95Aug 3434.66 5442.06 6247.94 4854.74Jul 3652.79 5748.07 6696.28 5162.51Jun 3570.58 5613.54 6520.98 5023.82May 3797.12 5955.71 6984.43 5367.57Apr - 15/16 3760.06 5876.26 6960.63 5329.14

15/16 - 16/17

FTSE(TM) UK Index SeriesThe figures shown in the table are for the close of business on the last working day of the month, or the last day for which data was available.

Source: Thompson Reuters





13/14 - 14/15



FTSE(TM) 100 Index









11/12 - 12/13



FTSE(TM) 100 Index









2000

3000

4000

5000

6000

7000

8000

MAR2011

MAR2012

MAR2013

MAR2014

MAR2015

MAR2016

MAR2017

FTSE(TM) ALL SHARE

FTSE(TM) 100

2010 – 2017






Financial Markets FTSE(TM) All Share Dividends

Year Dividend growth % pa

Real dividend growth % pa

2016 5.5 2.92015 7.0 5.82014 0.6 -1.02013 7.2 4.42012 9.8 6.52011 13.6 8.42010 0.2 -4.42009 -10.9 -13.02008 -0.1 -1.02007 7.7 3.52006 9.7 5.02005 14.2 11.82004 7.5 3.82003 1.8 -1.02002 1.3 -1.62001 -0.2 -0.92000 -3.2 -5.91999 2.8 1.01998 0.3 -2.41997 3.4 -0.21996 9.9 7.31995 12.0 8.51994 7.9 4.91993 -4.4 -6.3

Year Dividend growth % pa

Real dividend growth % pa

1992 -0.5 -3.01991 5.6 1.11990 10.5 1.11989 17.0 8.71988 16.1 8.71987 11.4 7.41986 14.1 10.01985 12.8 6.81984 20.6 15.31983 8.1 2.71982 9.0 3.41981 3.5 -7.61980 12.8 -2.01979 23.8 5.61978 12.6 3.91977 16.1 3.51976 12.8 -2.01975 11.7 -10.51974 8.3 -9.11973 3.9 -6.01972 9.3 1.61971 5.1 -3.61970 5.5 -2.31969 2.7 -1.9

1969 - 2016

Dividend GrowthCalculation of dividend growth based on FTSE(TM) Actuaries All-Share Index, using gross dividends up to 31 December 1998 and net dividends thereafter. The real dividend growth shows the rate of growth in excess of retail price inflation. Calculations based on calendar year end data.

Source: Data calculated by Aon Hewitt




Financial Markets FTSE(TM) World Index Series

15/16 - 16/17

Date FTSE(TM) All World Ex UK Index

FTSE(TM) All World Ex UK Total Return Index

FTSE(TM) World Ex UK Index

FTSE(TM) World Ex UK Total Return Index


FTSE(TM) World Index SeriesThe figures shown in the table are for the close of business on the last working day of the month, or the last day for which data was available.






13/14 - 14/15












11/12 - 12/13












2011 – 2017

MAR2011

MAR2012

MAR2013

MAR2014

MAR2015

MAR2016

MAR2017

FTSE(TM) All World Ex-UK Index

FTSE(TM) All World Index

100

800

700

600

500

400

300

200

FTSE(TM) World Index SeriesSource: Thompson Reuters




Financial MarketsCurrencies

15/16 - 16/17

Date £1 Sterling = US $ £1 Sterling = Japanese Yen 1 Euro = £ Sterling Bank of England Effective Sterling Index


CurrenciesFigures relate to the last working day of each month.

Sources: Bank of England, European Central Bank, WM/Reuters

Please note the euro/sterling exchange rates are available free of charge from the ECB website www.ecb.int.





13/14 - 14/15










11/12 - 12/13









Financial MarketsBank Rates and Cash Index

1997 – 2016

The Bank of England’s Base RateThe Bank of England’s Bank Rate as set by The Bank of England’s Monetary Policy Committee.

In some years, the Bank Rate did not alter. The final rate shown in the table was current at the date of publication.

The Cash IndexAccumulation and rates of return figures represent the total return based on the UK interbank 3-month index.

Sources: Bank of England and Thomson Reuters

Bank Base RatesDate of change Base Rate %

4 Aug 2016 0.25

5 Mar 2009 0.5

5 Feb 2009 1.0

8 Jan 2009 1.5

4 Dec 2008 2.0

6 Nov 2008 3.0

8 Oct 2008 4.5

10 Apr 2008 5.0

7 Feb 2008 5.25

6 Dec 2007 5.5

5 Jul 2007 5.75

10 May 2007 5.5

11 Jan 2007 5.25

9 Nov 2006 5.0

3 Aug 2006 4.75

4 Aug 2005 4.5

5 Aug 2004 4.75

10 Jun 2004 4.5

6 May 2004 4.25

5 Feb 2004 4.0

6 Nov 2003 3.75

Date of change Base Rate %

10 Jul 2003 3.5

6 Feb 2003 3.75

8 Nov 2001 4.0

4 Oct 2001 4.5

18 Sep 2001 4.75

2 Aug 2001 5.0

10 May 2001 5.25

5 Apr 2001 5.5

8 Feb 2001 5.75

10 Feb 2000 6.0

13 Jan 2000 5.75

4 Nov 1999 5.5

8 Sep 1999 5.25

10 Jun 1999 5.0

8 Apr 1999 5.25

4 Feb 1999 5.5

7 Jan 1999 6.0

10 Dec 1998 6.25

5 Nov 1998 6.75

8 Oct 1998 7.25

4 Jun 1998 7.5

Cash IndexAccumulation Rate of Return %

2016 215.8 0.5

2015 214.6 0.6

2014 213.4 0.5

2013 212.3 0.5

2012 211.2 0.9

2011 209.3 0.8

2010 207.6 0.7

2009 206.1 1.5

2008 203.2 6.1

2007 191.5 6.1

2006 180.5 4.8

2005 172.2 4.9

2004 164.2 4.6

2003 157.0 3.8

2002 151.2 4.1

2001 145.2 5.4

2000 137.8 6.3

1999 129.6 5.7

1998 122.6 7.8

1997 113.7 6.9




Financial Markets FTSE(TM) FI Gilt Index Series – Over 15-year Coupons UK Fixed Interest Gilts

15/16 - 16/17

Date Index Total Return Index Yields

Mar 343.19 5159.1 1.59

Feb 340.71 5121.7 1.60

Jan 325.06 4871.6 1.88

Dec 336.95 5029.7 1.71

Nov 326.62 4875.5 1.88

Oct 337.44 5003.1 1.69

Sep 360.88 5350.7 1.25

Aug 378.59 5613.2 1.07

Jul 359.62 5317.4 1.28

Jun 348.47 5133.4 1.52

May 316.06 4656.0 2.00

Apr - 16/17 307.76 4501.6 2.14

Mar 314.03 4593.3 1.99

Feb 313.32 4583.0 1.93

Jan 309.20 4507.7 2.07

Dec 292.37 4244.7 2.41

Nov 298.29 4330.7 2.29

Oct 295.87 4258.5 2.34

Sep 302.22 4349.9 2.20

Aug 296.95 4274.1 2.33

Jul 297.40 4267.0 2.34

Jun 289.42 4136.9 2.49

May 299.04 4274.3 2.26

Apr - 15/16 299.98 4249.4 2.27

FTSE(TM) Gilt Index SeriesThe figures shown in the table are for the close of business on the last working day of the month, or the last day for which data was available.

From January 2006, the reinvested index shown is the Total Return Index. Before this date the reinvested index has been calculated by investing the notional accrued interest at the end of each month without allowing for tax or expenses.

Source: FTSE(TM)




Financial Markets FTSE(TM) FI Gilt Index Series – Over 15-year Coupons UK Fixed Interest Gilts

2004- 2013

Date Index Total Return Index Yields

Mar 311.70 4415.4 2.01

Feb 301.46 4270.2 2.19

Jan 327.28 4621.3 1.74

Dec 301.35 4241.0 2.18

Nov 291.49 4102.4 2.35

Oct 278.33 3880.6 2.66

Sep 273.58 3814.3 2.78

Aug 277.65 3871.0 2.70

Jul 261.87 3638.2 3.05

Jun 257.01 3558.5 3.14

May 258.38 3577.4 3.06

Apr - 14/15 257.19 3522.6 3.16

Date Index Reinvested Index Yields

Dec-13 247.28 3362.5 3.42Dec-12 272.46 3574.3 2.31Dec-11 274.02 3473.4 2.46Dec-10 216.73 2529.0 4.40Dec-09 216.73 2529.0 4.40Dec-08 237.60 2657.5 3.71Dec-07 218.70 2338.4 4.50Dec-06 222.90 2277.6 4.57Dec-05 232.91 3398.5 (2276.9) 4.08Dec-04 219.72 3061.6 4.52

14/15


From January 2006, the reinvested index shown is the Total Return Index. Before this date the reinvested index has been calculated by investing the notional accrued interest at the end of each month without allowing for tax or expenses. Both figures are shown against end 2005 for comparison purposes.

Source: FTSE(TM)




Financial Markets FTSE(TM) IL Gilt Index Series – Over 5 Year Index-linked Stock Index

15/16-16/17

Date Index Total Return Index Yields at 5% inflation rate

Mar 716.21 5325.6 -1.72

Feb 711.46 5288.0 -1.73

Jan 703.17 5226.3 -1.65

Dec 703.23 5221.7 -1.67

Nov 678.13 5035.3 -1.53

Oct 720.97 5346.9 -1.76

Sep 725.67 5381.7 -1.79

Aug 731.85 5425.1 -1.83

Jul 663.94 4921.7 -1.44

Jun 654.96 4850.1 -1.39

May 587.01 4347.0 -0.95

Apr - 16/17 575.24 4253.4 -0.86

Mar 590.30 4364.8 -0.98

Feb 584.39 4318.8 -0.95

Jan 584.84 4322.1 -0.92

Dec 555.35 4099.0 -0.71

Nov 574.88 4243.1 -0.86

Oct 569.19 4194.5 -0.81

Sep 575.25 4239.1 -0.84

Aug 576.69 4247.4 -0.87

Jul 580.54 4275.8 -0.89

Jun 563.38 4144.0 -0.76

May 579.57 4263.1 -0.88

Apr - 15/16 578.45 4248.0 -0.88


Source: FTSE(TM)




Financial Markets FTSE(TM) IL Gilt Index Series – Over 5 Year Index-linked Stock Index

1998 – 2009

2003 - 2013


Dec-13 470.79 3418.2 0.03Dec-12 472.72 3398.6 -0.07Dec-11 475.60 3381.9 -0.25Dec-10 364.49 2514.9 0.68Dec-09 364.49 2514.9 0.68Dec-08 351.49 2382.1 0.97Dec-07 347.00 2305.9 1.00Dec-06 326.47 2124.0 1.23Dec-05 325.12 2069.2 1.09Dec-04 303.53 1888.2 1.54Dec-03 284.99 1731.5 1.83

14/15


Mar 583.84 4285.1 -0.93

Feb 560.67 4112.9 -0.77

Jan 593.64 4354.7 -0.97

Dec 566.32 4149.1 -0.77

Nov 557.00 4080.8 -0.68

Oct 528.46 3865.4 -0.44

Sep 518.72 3791.8 -0.37

Aug 524.18 3829.6 -0.43

Jul 495.13 3617.3 -0.16

Jun 490.77 3580.1 -0.12

May 496.48 3621.8 -0.17

Apr - 14/15 491.01 3575.2 -0.13


Source: FTSE(TM)




Financial Markets FTSE(TM) Gilt Index Series

2011 – 2017

MAR2011

MAR2012

MAR2013

MAR2014

MAR2015

MAR2016

MAR2017

Over 5yr Index-linked at 5% Yields

15yr All Coupons Fixed Interest Yields

-2

-1

0

1

2

3

4

5FTSE(TM) Gilt Index Series Source: FTSE(TM)




FTSE(TM) British Government Stocks Yield Indices FTSE(TM) All-Share

Actuaries Yield (%)

UK Gilts Index-linked Stocks, over 5 Years

5 Year (%)

10 Year (%)

15 Year (%)

20 Year (%)

0% Inflation (%)

5% Inflation (%)

Mar 0.38 1.13 1.59 1.76 -1.69 -1.72 3.47Feb 0.36 1.13 1.60 1.77 -1.70 -1.73 3.48Jan 0.67 1.46 1.88 2.03 -1.62 -1.65 3.49Dec 0.50 1.28 1.71 1.86 -1.64 -1.67 3.47Nov 0.63 1.45 1.88 2.03 -1.50 -1.53 3.64Oct 0.58 1.27 1.69 1.85 -1.73 -1.76 3.52Sep 0.19 0.80 1.25 1.46 -1.76 -1.79 3.46Aug 0.15 0.66 1.07 1.24 -1.80 -1.83 3.52Jul 0.19 0.81 1.28 1.50 -1.41 -1.44 3.52Jun 0.31 1.03 1.52 1.72 -1.36 -1.39 3.66May 0.82 1.55 2.00 2.18 -0.92 -0.95 3.75Apr - 16/17 0.91 1.68 2.14 2.34 -0.83 -0.86 3.73Mar 0.74 1.50 1.99 2.21 -0.95 -0.98 3.77Feb 0.63 1.40 1.93 2.18 -0.92 -0.95 3.90Jan 0.89 1.63 2.07 2.27 -0.89 -0.92 3.83Dec 1.30 2.00 2.41 2.59 -0.68 -0.71 3.70Nov 1.16 1.87 2.29 2.47 -0.83 -0.86 3.63Oct 1.23 1.93 2.34 2.53 -0.78 -0.81 3.58Sep 1.11 1.79 2.20 2.39 -0.81 -0.84 3.71Aug 1.29 1.96 2.33 2.49 -0.84 -0.87 3.60Jul 1.35 2.00 2.34 2.49 -0.86 -0.89 3.39Jun 1.42 2.13 2.49 2.65 -0.73 -0.76 3.46May 1.23 1.90 2.26 2.43 -0.85 -0.88 3.25Apr - 15/16 1.27 1.92 2.27 2.44 -0.85 -0.88 3.23

Financial MarketsYields and Interest Rates

15/16 – 16/17

Yields and Interest RatesThe figures shown in the table are for the close of business on the last working day of the month, or the last day for when data was available.

Source: FTSE(TM)





13/14 – 14/15


Source: FTSE(TM)


Actuaries Yield (%)


5 Year (%)

10 Year (%)

15 Year (%)

20 Year (%)

0% Inflation (%)

5% Inflation (%)

Mar 1.05 1.65 2.01 2.20 -0.89 -0.93 3.33Feb 1.24 1.84 2.19 2.37 -0.73 -0.77 3.22Jan 0.86 1.38 1.74 1.93 -0.94 -0.97 3.29Dec 1.16 1.80 2.18 2.38 -0.73 -0.77 3.37Nov 1.27 1.96 2.35 2.55 -0.64 -0.68 3.31Oct 1.54 2.27 2.66 2.85 -0.40 -0.44 3.37Sep 1.75 2.44 2.78 2.95 -0.32 -0.37 3.34Aug 1.67 2.36 2.70 2.86 -0.39 -0.43 3.25Jul 1.96 2.71 3.05 3.21 -0.12 -0.16 3.30Jun 1.97 2.76 3.14 3.31 -0.08 -0.12 3.27May 1.78 2.65 3.06 3.26 -0.13 -0.17 3.32Apr - 14/15 1.83 2.75 3.16 3.34 -0.09 -0.13 3.35Mar 1.83 2.76 3.17 3.35 -0.05 -0.10 3.41Feb 1.76 2.74 3.17 3.35 0.00 -0.04 3.31Jan 1.73 2.72 3.16 3.34 0.02 -0.03 3.38Dec 1.95 2.99 3.42 3.57 0.07 0.03 3.28Nov 1.62 2.68 3.21 3.44 -0.03 -0.07 3.34Oct 1.50 2.52 3.04 3.29 -0.06 -0.10 3.28Sep 1.54 2.58 3.09 3.34 0.01 -0.04 3.41Aug 1.56 2.61 3.16 3.42 0.01 -0.04 3.47Jul 1.28 2.32 2.93 3.27 -0.01 -0.05 3.31Jun 1.40 2.41 2.99 3.30 0.01 -0.03 3.53May 1.07 1.97 2.57 2.96 -0.25 -0.29 3.33Apr - 13/14 0.79 1.62 2.22 2.63 -0.42 -0.47 3.36





11/12 – 12/13


Source: FTSE(TM)


Actuaries Yield (%)


5 Year (%)

10 Year (%)

15 Year (%)

20 Year (%)

0% Inflation (%)

5% Inflation (%)

Mar 0.81 1.70 2.33 2.76 -0.38 -0.43 3.35Feb 0.97 1.89 2.52 2.94 -0.21 -0.25 3.33Jan 1.11 2.00 2.60 2.99 -0.21 -0.26 3.37Dec 0.92 1.73 2.31 2.71 -0.03 -0.07 3.57Nov 0.87 1.65 2.23 2.64 0.02 -0.03 3.60Oct 0.87 1.71 2.31 2.72 0.14 0.09 3.62Sep 0.72 1.54 2.16 2.60 0.14 0.09 3.64Aug 0.64 1.46 2.07 2.50 -0.08 -0.12 3.66Jul 0.62 1.44 2.04 2.47 -0.06 -0.11 3.65Jun 0.87 1.70 2.29 2.68 -0.05 -0.10 3.69May 0.73 1.53 2.12 2.54 -0.15 -0.20 3.81Apr - 12/13 1.13 2.06 2.67 3.05 -0.02 -0.08 3.48Mar 1.12 2.11 2.72 3.09 -0.06 -0.11 3.45Feb 1.09 2.01 2.59 2.95 -0.12 -0.17 3.29Jan 1.03 1.89 2.43 2.75 -0.20 -0.25 3.36Dec 1.04 1.92 2.46 2.78 -0.19 -0.25 3.52Nov 1.30 2.21 2.70 2.95 -0.08 -0.13 3.56Oct 1.39 2.36 2.90 3.19 0.27 0.22 3.34Sep 1.40 2.34 2.91 3.25 0.22 0.16 3.66Aug 1.62 2.71 3.34 3.68 0.42 0.36 3.46Jul 1.75 2.93 3.56 3.87 0.39 0.33 3.14Jun 2.19 3.42 3.98 4.21 0.56 0.48 2.99May 2.23 3.35 3.85 4.06 0.58 0.50 2.97Apr - 11/12 2.43 3.52 3.98 4.14 0.62 0.54 2.91





2002 – 2017

FTSE(TM) All-Share Actuaries Yield (%)

15 Year Gilt Yield (%)

2

3

4

5

6

1

MAR2002

MAR2004

MAR2006

MAR2008

MAR2010

MAR2012

MAR2014

MAR2016

MAR2003

MAR2005

MAR2007

MAR2009

MAR2011

MAR2013

MAR2015

MAR2017

15 Year All Coupon Gilt Yield and FTSE(TM) Actuaries All-Share Net Dividend YieldSource of base data: FTSE(TM)




Financial MarketsReturns Over 12 Months

Cash Deposits (%)

Long Gilts (%)

Index-linked Gilts (%)

UK Equities (%)

Mar 0.44 12.32 19.89 21.95Feb 0.46 13.14 21.36 22.88Jan 0.48 8.00 18.81 20.06Dec 0.50 18.49 24.33 16.75Nov 0.52 12.58 16.65 9.77Oct 0.53 17.48 24.51 12.22Sep 0.55 23.01 24.08 16.82Aug 0.56 31.33 24.90 11.73Jul 0.57 24.62 13.47 3.82Jun 0.58 24.09 14.85 2.21May 0.59 8.93 1.80 -6.31Apr - 16/17 0.58 5.94 0.19 -5.69Mar 0.58 4.03 1.74 -3.92Feb 0.57 6.01 -3.58 -7.37Jan 0.57 -2.46 -0.58 -4.63Dec 0.57 0.09 -0.97 0.98Nov 0.57 5.57 3.56 0.64Oct 0.56 9.74 7.65 2.99Sep 0.56 14.04 10.52 -2.30Aug 0.57 10.41 9.63 -2.34Jul 0.56 17.28 16.14 5.38Jun 0.56 16.25 14.20 2.60May 0.56 19.48 15.69 7.47Apr - 15/16 0.55 20.63 16.68 7.48

15/16 - 16/17

Returns Over 12 MonthsThe figures in this table show the returns that single lump sum investments of each type would have produced over the previous 12 months, assuming all income is reinvested. The figures are as at the end of the month shown.

Cash Deposits: 3-month LIBOR

Long Gilts: FTSE(TM) Actuaries Over 15 Year Gilts Index

Index-linked Gilts: FTSE(TM) Actuaries Index-linked All Stocks Index

UK Equities: FTSE(TM) Actuaries All-Share Index

Sources: Aon Hewitt.





12/13 - 13/14

Cash Deposits (%)

Long Gilts (%)


UK Equities (%)

Mar 0.55 26.96 18.55 6.57Feb 0.55 22.91 16.03 5.56Jan 0.54 33.27 22.18 7.11Dec 0.54 26.13 18.96 1.18Nov 0.54 20.64 15.10 4.71Oct 0.54 12.13 8.88 1.03Sep 0.53 11.41 8.79 6.09Aug 0.53 14.77 10.36 10.33Jul 0.53 6.72 4.46 5.61Jun 0.53 5.32 3.90 13.12May 0.52 1.97 0.31 8.86Apr - 14/15 0.52 -4.13 -3.81 10.52Mar 0.52 -3.24 -4.26 8.93Feb 0.52 -0.22 -1.50 13.29Jan 0.51 0.63 -1.68 10.10Dec 0.51 -5.93 0.54 20.81Nov 0.51 -5.72 3.20 19.80Oct 0.51 -2.58 7.06 22.76Sep 0.52 -4.45 5.77 18.93Aug 0.53 -7.10 1.78 18.90Jul 0.54 -6.61 2.66 24.28Jun 0.57 -4.64 2.37 17.93May 0.61 -2.38 4.97 30.11Apr - 13/14 0.65 9.90 11.63 17.83

Returns Over 12 MonthsThe figures in this table show the returns that single lump sum investments of each type would have produced over the previous 12 months, assuming all income is reinvested.










10/11 - 11/12

Cash Deposits (%)

Long Gilts (%)


UK Equities (%)

Mar 0.69 8.14 10.21 16.77Feb 0.74 2.78 5.82 14.06Jan 0.78 -1.52 4.04 16.30Dec 0.84 2.91 0.63 12.30Nov 0.88 5.86 2.15 12.14Oct 0.92 8.99 5.05 9.80Sep 0.95 13.04 4.59 17.25Aug 0.98 22.02 12.25 10.18Jul 1.00 25.69 10.77 0.37Jun 0.99 27.88 14.26 -3.13May 0.98 26.99 17.46 -8.00Apr - 12/13 0.97 19.78 15.51 -2.00Mar 0.95 22.55 18.12 1.39Feb 0.93 25.88 19.17 1.53Jan 0.91 32.06 23.20 -0.31Dec 0.87 26.26 19.94 -3.46Nov 0.85 25.07 20.13 2.57Oct 0.83 18.47 13.32 0.63Sep 0.81 11.22 11.86 -4.36Aug 0.79 3.16 8.19 7.26Jul 0.78 9.18 14.23 14.93Jun 0.77 2.81 8.94 25.63May 0.77 7.21 9.48 20.36Apr - 11/12 0.75 9.26 8.26 13.68

Returns Over 12 MonthsThe figures in this table show the returns that single lump sum investments of each type would have produced over the previous 12 months, assuming all income is reinvested.









Financial MarketsRolling 5-Year Returns

2000 – 2017

MAR2001

MAR2000

MAR2002

MAR2003

MAR2004

MAR2005

MAR2006

MAR2007

MAR2008

MAR2009

MAR2010

MAR2011

MAR2012

MAR2013

MAR2014

MAR2015

MAR2016

MAR2017

-10

-5

0

5

10

15

20Cash Deposits Long Gilts Index-linked Gilts UK Equities

Rolling 5-Year ReturnsThe graph shows the annualised returns that single lump sum investments of each type would produce over rolling 5-year periods to the end of each month, assuming all income is reinvested.

The investment types used are also shown, together with the total returns upon which they are based.

Cash Deposits: 3-month Interbank and LIBOR rates




Source of base data: Aon Hewitt




Financial Markets Historical Returns (Since 1970)

1993 – 2016

UK Equities Long Gilts Cash Deposits

1 Year % p.a

5 Years % p.a

10 Years % p.a

20 Years % p.a

1 Year % p.a

5 Years % p.a

10 Years % p.a

20 Years % p.a

1 Year % p.a

5 Years % p.a

10 Years % p.a

20 Years % p.a

2016 16.8 10.1 5.6 6.7 18.5 7.7 8.2 8.4 0.5 0.6 1.7 3.52015 1.0 6.0 5.6 6.7 0.1 9.1 6.4 8.0 0.6 0.7 2.1 3.72014 1.2 8.7 7.6 7.8 26.1 10.9 7.5 8.8 0.5 0.7 2.5 4.02013 20.8 14.3 8.8 7.4 -5.9 4.8 5.9 6.9 0.5 0.8 3.0 4.32012 12.3 2.5 8.8 7.8 2.9 8.9 6.7 8.8 0.9 1.8 3.3 4.62011 -3.5 1.2 4.8 8.1 26.3 8.8 7.4 9.5 0.9 2.8 3.6 5.02010 14.5 5.1 3.7 9.4 8.8 3.9 4.8 9.2 0.7 3.6 4.0 5.52009 30.1 6.5 1.6 8.1 -4.8 4.3 4.8 8.9 1.2 4.4 4.5 6.22008 -29.9 3.5 1.2 8.3 13.7 7.0 5.2 9.5 5.5 5.1 5.0 6.92007 5.3 15.4 6.2 10.9 2.7 4.6 6.6 9.3 6.0 4.7 5.2 7.12006 16.8 8.5 7.9 11.0 0.0 6.0 8.6 10.0 4.8 4.3 5.2 7.32005 22.0 2.2 7.9 11.5 11.0 5.8 9.5 10.6 4.7 4.4 5.4 7.62004 12.8 -3.0 8.1 11.4 8.4 5.2 10.1 10.6 4.6 4.7 5.6 8.02003 20.9 -1.1 6.1 12.3 1.2 3.5 7.8 10.5 3.7 4.8 5.7 8.22002 -22.7 -2.3 6.8 12.7 9.9 8.7 10.9 11.3 4.0 5.6 5.9 8.62001 -13.3 7.3 11.6 15.6 -0.9 11.2 11.6 13.2 5.0 6.1 6.5 9.12000 -5.9 13.9 15.4 17.2 8.0 13.3 13.7 13.3 6.1 6.4 7.1 9.61999 24.2 20.3 14.9 19.3 -0.4 15.2 13.2 14.0 5.4 6.5 7.9 10.21998 13.8 13.8 15.9 18.6 29.6 12.4 13.9 14.3 7.4 6.5 8.8 10.61997 23.6 16.6 15.7 18.4 22.9 13.2 12.0 12.6 6.9 6.2 9.1 10.61996 16.7 16.0 14.2 19.5 9.0 12.1 11.4 13.8 6.1 6.8 9.4 10.81995 23.9 16.9 15.2 18.7 17.4 14.0 11.6 14.0 6.7 7.9 9.9 11.01994 -5.9 9.7 14.9 22.9 -12.2 11.3 11.1 15.0 5.5 9.4 10.4 11.31993 28.4 18.1 18.8 18.9 34.5 15.5 13.3 14.3 5.9 11.1 10.9 11.7

Historical ReturnsThe table gives annualised rates of return for investment classes shown below over the periods ending with each calendar year shown.

The returns are calculated using indices available for each relevant period.



Cash Deposits: 3-month Interbank and LIBOR

Source: Aon Hewitt




Financial Markets Historical Returns (Since 1970)

1970 – 1992

UK Equities Long Gilts Cash Deposits

1 Year % p.a

5 Years % p.a

10 Years % p.a

20 Years % p.a

1 Year % p.a

5 Years % p.a

10 Years % p.a

20 Years % p.a

1 Year % p.a

5 Years % p.a

10 Years % p.a

20 Years % p.a

1992 20.5 14.8 18.9 15.5 17.0 10.9 11.7 11.8 9.7 12.1 11.4 12.0

1991 20.8 12.3 19.7 15.3 18.7 10.7 14.8 10.4 11.6 12.1 11.8 11.8

1990 -9.7 13.6 19.0 16.4 4.2 9.3 13.0 11.1 14.8 11.9 12.1 11.6

1989 36.1 20.3 23.9 16.8 5.7 10.8 14.8 11.0 14.0 11.4 12.4 11.2

1988 11.5 19.6 21.4 14.3 9.5 11.1 14.6 10.8 10.3 10.6 12.4 10.9

1987 8.0 23.1 21.1 15.7 16.3 12.5 13.3 10.1 9.8 10.7 12.2 10.8

1986 27.5 27.6 25.0 17.1 11.5 19.0 16.2 9.4 11.0 11.5 12.2 10.6

1985 20.5 24.7 22.2 15.4 11.3 16.8 16.4 9.0 12.2 12.2 12.2 10.4

1984 32.0 27.7 31.6 15.0 7.2 18.8 19.1 8.7 10.0 13.4 12.1 10.1

1983 29.2 23.2 19.0 13.0 16.4 18.2 15.2 8.2 10.4 14.2 12.6 9.8

1982 29.2 19.0 12.1 12.6 54.2 14.1 12.0 7.6 13.8 13.8 12.6 9.4

1981 13.6 22.4 10.9 11.2 1.6 13.5 6.1 6.4 14.9 12.9 11.9 9.0

1980 35.5 19.8 13.9 10.6 21.3 16.0 9.2 5.9 18.2 12.2 11.0 8.5

1979 10.5 35.6 10.1 9.0 4.5 19.3 7.4 4.5 13.8 10.8 10.1 7.9

1978 8.5 14.9 7.6 11.4 -2.6 12.3 7.0 4.8 8.5 11.0 9.5 7.0

1977 48.9 5.6 10.5 12.9 50.2 9.9 7.0 5.8 9.5 11.4 9.4 6.8

1976 2.0 0.5 9.7 10.3 13.3 -0.8 3.0 3.5 11.2 10.8 9.0 6.6

1975 151.4 8.2 8.9 9.9 39.3 2.8 2.1 2.7 11.1 9.9 8.5 6.3

1974 -51.7 -10.6 0.4 5.5 -22.6 -3.3 -0.7 0.5 14.9 9.4 8.1 5.9

1973 -28.7 0.8 7.4 11.3 -12.6 2.0 1.5 1.6 10.3 8.0 7.0 5.4

1972 16.3 15.7 13.1 14.7 -9.9 4.2 3.3 2.8 6.7 7.5 6.4 5.1

1971 47.3 19.7 11.4 13.6 35.4 6.9 6.7 3.0 6.6 7.3 6.2 4.9

1970 -3.4 9.5 7.3 12.0 2.4 1.4 2.7 1.2 8.5 7.2 6.0 4.6

Historical ReturnsThe table gives annualised rates of return for investment classes shown below over the periods ending with each calendar year shown.

The returns are calculated using indices available for each relevant period.



Cash Deposits: 3-month Interbank and LIBOR

Source: Aon Hewitt




Financial Markets Pension Scheme Asset Allocation

Defined BenefitThe asset splits shown are taken from Purple Book 2016 and are based on scheme return data submitted to The Pensions Regulator by defined benefit schemes and defined benefit sections of hybrid schemes.

Defined Contribution The asset spreads shown are the average allocations in the default funds used in the accumulation phase by FTSE100 and FTSE250 companies in their DC schemes.

Sources: PPF / The Pensions Regulator and Schroders’ FTSE DC schemes report

Defined Benefit Schemes: Weighted Average Asset Allocation2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Equities 61.1% 59.5% 53.6% 46.4% 42.0% 41.1% 38.5% 35.1% 35.0% 33.0% 30.3%

Bonds 28.3% 29.6% 32.9% 37.1% 40.4% 40.1% 43.2% 44.8% 44.1% 47.7% 51.3%

Other Investments

10.6% 10.9% 13.5% 16.5% 17.6% 18.8% 18.3% 20.1% 20.9% 19.3% 18.4%

of which:

Insurance Policies

0.9% 0.8% 1.1% 1.4% 1.4% 1.6% 0.2% 0.1% 0.1% 0.1% 0.1%

Cash & Deposits

2.3% 2.3% 3.0% 3.9% 3.9% 4.1% 5.1% 6.7% 6.1% 3.5% 3.0%

Property 4.3% 5.2% 5.6% 5.2% 4.6% 4.4% 4.9% 4.7% 4.6% 4.9% 4.8%

Hedge Funds N/A N/A N/A 1.5% 2.2% 2.4% 4.5% 5.2% 5.8% 6.1% 6.6%

Other* 3.1% 2.5% 3.8% 4.5% 5.4% 6.3% 3.6% 3.5% 4.3% 4.7% 3.8%

*Other alternative investments excluding hedge funds

Defined Contribution Schemes: Average Asset Allocation

March 2013 October 2013 March 2014 October 2014 March 2015 October 2015 March 2016

UK Equities 32.7% 34.3% 34.6% 31.0% 28.9% 27.1% 25.3%

Global Equities 46.2% 45.0% 45.0% 43.5% 41.8% 42.7% 41.4%

Emerging Market Equities 2.9% 4.0% 3.7% 3.4% 3.1% 3.4% 4.2%

Fixed Income 9.2% 8.0% 7.4% 9.4% 14.4% 13.2% 15.5%

Alternatives** 7.0% 7.3% 7.9% 10.1% 10.6% 12.5% 12.5%

Other 2.1% 1.4% 1.4% 2.7% 1.1% 1.1% 1.1%

**Alternatives includes allocations to commodities, property and absolute return strategies



Earnings and Inflation






Earnings and InflationAverage Weekly Earnings

2007 – 2016

Index: 2000 = 100

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2016 156.5 160.4 174.4 158.9 156.5 157.6 157.2 154.7 154.6 155.1 155.0 159.2

2015 152.4 158.7 170.7 154.4 153.0 154.0 153.3 151.5 150.8 150.8 150.4 156.3

2014 150.5 158.1 163.7 150.4 149.0 151.0 148.1 147.1 148.0 148.1 147.5 153.7

2013 148.1 154.3 160.7 152.2 148.0 150.2 147.2 145.8 145.8 145.2 144.9 149.7

2012 146.6 153.3 161.7 145.8 145.0 148.7 145.9 144.8 144.5 143.6 143.9 147.1

2011 145.4 152.6 159.9 142.4 142.4 145.1 143.5 141.5 142.0 141.8 142.1 145.2

2010 140.5 151.0 156.6 138.9 139.1 140.4 139.2 138.5 139.5 138.8 139.1 142.4

2009 139.6 143.6 146.9 138.4 137.6 138.9 136.8 135.7 136.3 136.0 136.2 140.6

2008 142.1 152.3 148.6 136.1 136.4 137.4 136.3 135.2 135.1 135.1 135.2 139.7

2007 137.1 145.6 141.8 129.9 130.9 132.9 132.1 131.1 131.4 130.4 132.1 136.3

Percentage Increase in the Index Over Previous 12 Months

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec2016 2.7 1.1 2.2 2.9 2.3 2.3 2.6 2.1 2.6 2.9 3.1 1.92015 1.4 0.5 4.4 2.8 2.8 2.1 3.6 3.2 2.0 1.9 2.1 1.82014 1.6 2.4 1.9 -1.2 0.7 0.6 0.6 0.9 1.5 2.0 1.8 2.72013 1.1 0.7 -0.7 4.4 2.0 1.0 0.9 0.7 0.9 1.1 0.7 1.82012 0.1 0.7 0.9 2.4 1.8 1.4 1.6 2.3 1.8 1.3 1.3 1.32011 3.5 1.0 2.1 2.5 2.4 3.3 3.0 2.1 1.8 2.1 2.1 2.02010 0.6 5.2 6.6 0.4 1.1 1.1 1.8 2.1 2.3 2.1 2.1 1.32009 -1.7 -5.7 -1.1 1.7 0.9 1.1 0.3 0.3 0.9 0.7 0.8 0.72008 3.6 4.6 4.8 4.8 4.2 3.4 3.2 3.2 2.8 3.6 2.3 2.52007 6.3 7.7 4.6 4.2 4.6 4.2 4.5 5.0 5.5 4.2 5.1 3.4

Not seasonally adjusted, including bonuses and arrearsAverage Weekly EarningsThe Average Weekly Earnings measure replaced the Average Earnings Index as the official measure for earnings from January 2010.

Values in this new measure were updated in October 2010 to be based on the 2007 Standard Industrial Classification (SIC 2007).

Source: Office for National Statistics (ONS)




Earnings and InflationRetail Prices Index

1996 – 2016

Index: January 1987 = 100


2016 258.8 260.0 261.1 261.4 262.1 263.1 263.4 264.4 264.9 264.8 265.5 267.1

2015 255.4 256.7 257.1 258.0 258.5 258.9 258.6 259.8 259.6 259.5 259.8 260.6

2014 252.6 254.2 254.8 255.7 255.9 256.3 256.0 257.0 257.6 257.7 257.1 257.5

2013 245.8 247.6 248.7 249.5 250.0 249.7 249.7 251.0 251.9 251.9 252.1 253.4

2012 238.0 239.9 240.8 242.5 242.4 241.8 242.1 243.0 244.2 245.6 245.6 246.8

2011 229.0 231.3 232.5 234.4 235.2 235.2 234.7 236.1 237.9 238.0 238.5 239.4

2010 217.9 219.2 220.7 222.8 223.6 224.1 223.6 224.5 225.3 225.8 226.8 228.4

2009 210.1 211.4 211.3 211.5 212.8 213.4 213.4 214.4 215.3 216.0 216.6 218.0

2008 209.8 211.4 212.1 214.0 215.1 216.8 216.5 217.2 218.4 217.7 216.0 212.9

2007 201.6 203.1 204.4 205.4 206.2 207.3 206.1 207.3 208.0 208.9 209.7 210.9

2006 193.4 194.2 195.0 196.5 197.7 198.5 198.5 199.2 200.1 200.4 201.1 202.7

2005 188.9 189.6 190.5 191.6 192.0 192.2 192.2 192.6 193.1 193.3 193.6 194.1

2004 183.1 183.8 184.6 185.7 186.5 186.8 186.8 187.4 188.1 188.6 189.0 189.9

2003 178.4 179.3 179.9 181.2 181.5 181.3 181.3 181.6 182.5 182.6 182.7 183.5

2002 173.3 173.8 174.5 175.7 176.2 176.2 175.9 176.4 177.6 177.9 178.2 178.5

2001 171.1 172.0 172.2 173.1 174.2 174.4 173.3 174.0 174.6 174.3 173.6 173.4

2000 166.6 167.5 168.4 170.1 170.7 171.1 170.5 170.5 171.7 171.6 172.1 172.2

1999 163.4 163.7 164.1 165.2 165.6 165.6 165.1 165.5 166.2 166.5 166.7 167.3

1998 159.5 160.3 160.8 162.6 163.5 163.4 163.0 163.7 164.4 164.5 164.4 164.4

1997 154.4 155.0 155.4 156.3 156.9 157.5 157.5 158.5 159.3 159.5 159.6 160.0

1996 150.2 150.9 151.5 152.6 152.9 153.0 152.4 153.1 153.8 153.8 153.9 154.4

Retail Prices IndexThe Retail Prices Index has been rebased to January 1987=100.





Earnings and InflationRetail Prices Increases

1996 – 2016

Percentage Increase in the Index over Previous 12 Months


2016 1.3 1.3 1.6 1.3 1.4 1.6 1.9 1.8 2.0 2.0 2.2 2.5

2015 1.1 1.0 0.9 0.9 1.0 1.0 1.0 1.1 0.8 0.7 1.1 1.2

2014 2.8 2.7 2.5 2.5 2.4 2.6 2.5 2.4 2.3 2.3 2.0 1.6

2013 3.3 3.2 3.3 2.9 3.1 3.3 3.1 3.3 3.2 2.6 2.6 2.7

2012 3.9 3.7 3.6 3.5 3.1 2.8 3.2 2.9 2.6 3.2 3.0 3.1

2011 5.1 5.5 5.3 5.2 5.2 5.0 5.0 5.2 5.6 5.4 5.2 4.8

2010 3.7 3.7 4.4 5.3 5.1 5.0 4.8 4.7 4.6 4.5 4.7 4.8

2009 0.1 0.0 -0.4 -1.2 -1.1 -1.6 -1.4 -1.3 -1.4 -0.8 0.3 2.4

2008 4.1 4.1 3.8 4.2 4.3 4.6 5.0 4.8 5.0 4.2 3.0 0.9

2007 4.2 4.6 4.8 4.5 4.3 4.4 3.8 4.1 3.9 4.2 4.3 4.0

2006 2.4 2.4 2.4 2.6 3.0 3.3 3.3 3.4 3.6 3.7 3.9 4.4

2005 3.2 3.2 3.2 3.2 2.9 2.9 2.9 2.8 2.7 2.5 2.4 2.2

2004 2.6 2.5 2.6 2.5 2.8 3.0 3.0 3.2 3.1 3.3 3.4 3.5

2003 2.9 3.2 3.1 3.1 3.0 2.9 3.1 2.9 2.8 2.6 2.5 2.8

2002 1.3 1.0 1.3 1.5 1.1 1.0 1.5 1.4 1.7 2.1 2.6 2.9

2001 2.7 2.7 2.3 1.8 2.1 1.9 1.6 2.1 1.7 1.6 0.9 0.7

2000 2.0 2.3 2.6 3.0 3.1 3.3 3.3 3.0 3.3 3.1 3.2 2.9

1999 2.4 2.1 2.1 1.6 1.3 1.3 1.3 1.1 1.1 1.2 1.4 1.8

1998 3.3 3.4 3.5 4.0 4.2 3.7 3.5 3.3 3.2 3.1 3.0 2.8

1997 2.8 2.7 2.6 2.4 2.6 2.9 3.3 3.5 3.6 3.7 3.7 3.6

1996 2.9 2.7 2.7 2.4 2.2 2.1 2.2 2.1 2.1 2.7 2.7 2.5

These figures show the percentage increase in the Retail Prices Index, over the previous 12 months.





Earnings and InflationAverage Weekly Earnings and Retail Prices Index

2004 – 2016

MAR2004

MAR2005

MAR2006

MAR2007

MAR2008

MAR2009

MAR2010

MAR2011

MAR2012

MAR2013

MAR2014

MAR2015

MAR2016

AWE

ANNUAL INCREASE (%)

RPI

-6.0

-5.0

-4.0

-3.0

-2.0

-1.0

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0 AWE: Average Weekly Earnings, not seasonally adjusted, including bonuses and arrears.

RPI: Retail Prices Index.

Source of base data: Office for National Statistics




Earnings and InflationOther Inflation Measures

15/16 – 16/17

Date CPI Index 2015=100

CPI Annual Increase (%)

RPIX Index Jan 1987 = 100

RPIX Annual Increase (%)

Mar 102.5 2.3 269.3 3.4Feb 102.1 2.3 268.8 3.5Jan 101.4 1.8 265.8 2.9Dec 101.9 1.6 267.4 2.7Nov 101.4 1.2 265.8 2.5Oct 101.2 0.9 265.0 2.2Sep 101.1 1.0 264.9 2.2Aug 100.9 0.6 264.5 1.9Jul 100.6 0.6 263.2 1.9Jun 100.6 0.5 262.9 1.7May 100.4 0.3 261.9 1.5Apr - 16/17 100.2 0.3 261.1 1.4Mar 100.2 0.5 260.8 1.6Feb 99.8 0.3 259.7 1.4Jan 99.5 0.3 258.4 1.4Dec 100.3 0.2 260.3 1.3Nov 100.3 0.1 259.4 1.1Oct 100.3 -0.1 259.2 0.8Sep 100.2 -0.1 259.3 0.9Aug 100.3 0.0 259.5 1.2Jul 100.0 0.1 258.2 1.1Jun 100.2 0.0 258.5 1.1May 100.1 0.1 258.1 1.1Apr - 15/16 99.9 -0.1 257.5 0.9

Other Inflation Measures CPI: Consumer Prices Index. Adopted to public sector and certain private sector pension indexation from 2010. Prior to 2003 known as HICP.

RPIX: All items in Retail Prices Index, excluding mortgage interest payments.

Other series: The Office for National Statistics also publish other series, including the following:

CPIH – a measure of UK consumer price inflation that includes owner occupiers’ housing costs.

RPIJ – a variant of the RPI calculated using formulae that meet international standards.






14/15 – 15/16
















11/12 – 12/13















Earnings and InflationPrice Inflation Measures

2006 – 2016

MAR2006

MAR2007

MAR2008

MAR2009

MAR2010

MAR2011

MAR2012

MAR2013

MAR2014

MAR2015

MAR2016

MAR2017

CPI

RPI

RPIX

-2

-1

0

1

2

3

4

5

6Price Inflation MeasuresThe graph compares inflation measures increases in the following indices:

RPI All items in the Retail Prices Index.

RPIX All items in Retail Prices Index, excluding mortgage interest payments.

CPI Consumer Prices Index.

Source of base data: Office for National Statistics



43Aon Hewitt Facts & Figures Statistics for the Tax Year 2017/2018

Tax and Investment Information





Tax and Investment InformationIncome Tax Rates

Lower Rate Basic Rate Higher Rate Additional Rate(%) On First (£) (%) On Next* (£) (%) Above (£)* (%) Above (£)

2017/2018 N/A N/A 20 33,500** 40 33,500** 45 150,0002016/2017 N/A N/A 20 32,000 40 32,000 45 150,0002015/2016 N/A N/A 20 31,785 40 31,785 45 150,0002014/2015 N/A N/A 20 31,865 40 31,865 45 150,0002013/2014 N/A N/A 20 32,010 40 32,010 45 150,0002012/2013 N/A N/A 20 34,370 40 34,370 50 150,0002011/2012 N/A N/A 20 35,000 40 35,000 50 150,0002010/2011 N/A N/A 20 37,400 40 37,400 50 150,0002009/2010 N/A N/A 20 37,400 40 37,4002008/2009 N/A N/A 20 36,000 40 36,0002007/2008 10 2,230 22 32,370 40 34,6002006/2007 10 2,150 22 31,150 40 33,3002005/2006 10 2,090 22 30,310 40 32,4002004/2005 10 2,020 22 29,380 40 31,4002003/2004 10 1,960 22 28,540 40 30,5002002/2003 10 1,920 22 27,980 40 29,9002001/2002 10 1,880 22 27,520 40 29,4002000/2001 10 1,520 22 26,880 40 28,4001999/2000 10 1,500 23 26,500 40 28,0001998/1999 20 4,300 23 22,800 40 27,100

* The thresholds in the table apply to all UK unless otherwise stated

** The threshold given in the table for 2017/18 applies to UK except Scotland. For Scottish rate tax payers, the higher rate threshold for the year is £31,500

Rate applicable to trusts (trust rate): 1997/98 to 2003/04 34%, 2004/05 to 2009/10 40%, 2010/11 to 2012/13 50%, 2013/14 to 2016/17 45%

Schedule F trust rate (dividend trust rate): 1999/00 to 2003/04 25%, 2004/05 to 2009/10 32.5%, 2010/11 to 2012/13 42.5%, 2013/14 to 2015/16 37.5%,

2016/17 to 2017/18 38.1%

1998/1999 - 2017/2018

Income Tax RatesFigures relate to income subject to income tax in excess of an individual’s allowance (see next page - Income Tax Reliefs). From April 1999 to March 2008, when the 10% band was applicable, savings income was treated as the top slice of income and taxable at 10%, 20% or 40%, dependent on overall taxable income.

From 2008/09 the lower rate was abolished and a ‘starting rate’ was applied to savings income to the extent that it does not exceed the starting rate threshold applicable for that year when added to the individual’s taxable non-savings income (ie to non-savings income in excess of any allowances). From 2015/16 the starting rate was reduced from 10% to zero and the starting rate limit threshold was increased from £2,880 to £5,000.

Dividend income is taxed differently. For 2016/17 and 2017/18 a nil rate applies to the first £5,000 of dividend income, with tax rates above that level of 7.5%, 32.5% or 38.1% where total income is within respectively the basic, higher or additional rate band.

Source: HM Treasury




Tax and Investment InformationIncome Tax Reliefs

2001/2002 – 2017/2018

Personal Allowance (1)(2)

Age Allowance (65-74) (2)(3)(4)

Age Allowance (75 and over)

(2)(3)(5)

Married Couple’s Allowance (65 to 74) (3)(4)(6)

Married Couple’s Allowance

(75 and over) (3)(6)(7)

Income Limit for Age-related Allowances

(3)

(£) (£) (£) (£) (£) (£)

2017/2018 11,500 N/A N/A – 8,445 28,0002016/2017 11,000 N/A N/A – 8,355 27,7002015/2016 10,600 10,600 10,660 – 8,355 27,7002014/2015 10,000 10,500 10,660 – 8,165 27,0002013/2014 9,440 10,500 10,660 – 7,915 26,1002012/2013 8,105 10,500 10,660 – 7,705 25,4002011/2012 7,475 9,940 10,090 – 7,295 24,0002010/2011 6,475 9,490 9,640 – 6,965 22,9002009/2010 6,475 9,490 9,640 – 6,965 22,9002008/2009 6,035 9,030 9,180 6,535 6,625 21,8002007/2008 5,225 7,550 7,690 6,285 6,365 20,9002006/2007 5,035 7,280 7,420 6,065 6,135 20,1002005/2006 4,895 7,090 7,220 5,905 5,975 19,5002004/2005 4,745 6,830 6,950 5,725 5,795 18,9002003/2004 4,615 6,610 6,720 5,565 5,635 18,3002002/2003 4,615 6,100 6,370 5,465 5,535 17,9002001/2002 4,535 5,990 6,260 5,365 5,435 17,600

From 2015/16 a transferable tax allowance is available to those born after 5 April 1935. This allows individuals to transfer up to 10% of their personal allowance to their spouse / civil partner, provided neither party is liable to tax above the basic rate. The recipient is then eligible to a tax reduction of 20% of the transferred amount.

Other reliefs available include relief at 12.5% (‘LAPR’) for premiums on life assurance contracts made before 14 March 1984. However LAPR was abolished for premiums paid or due after 6 April 2015.

From 2016/17 a personal savings allowance applies. Basic rate tax payers receive up to £1,000 of savings income tax free. For higher and additional rate tax payers, the respective limits are £500 and nil.

Income Tax ReliefsThe age allowances were frozen at the 2012/13 levels until 2016/17, when they became aligned with the personal allowance, from which point they were removed.

1. Prior to 2013/14, age under 65. From 2013/14, born after 05/04/1948.

2. From 2010/11 allowance reduced by £1 for every £2 of income above £100,000.

3. Age related allowances reduce by £1 for every £2 above the income limit until the standard personal allowance is reached. Thereafter, excess income reduces any married couple’s allowance but subject to a minimum amount.

4. Prior to 2013/14, age between 65 and 74. From 2013/14, born between 05/04/1938 and 06/04/1948.

5. Prior to 2013/14, age over 75. From 2013/14, born before 06/04/1938.

6. From 1999/00 relief restricted to 10% (15% previously).

7. Prior to 2010/11, elder spouse over age 75. From 2010/11 born before 6 April 1935.

Source: HM Treasury




Tax and Investment InformationInheritance Tax / Corporation Tax / Insurance Premium Tax

Insurance Premium TaxStandard Rate

2017/2018 12% of gross premium from 1 June 201710% of gross premium prior to 1 June 2017

2016/2017 10% of gross premium from 1 October 20169.5% of gross premium prior to 1 October 2016

2011/2012 - 2014/2015 9.5% of gross premium from 1 November 20156% of gross premium prior to 1 November 2015

2000/2001 – 2010/2011 5% of gross premium

1999/2000 5% of gross premium from 1 July 1999 4% of gross premium prior to 1 July 1999

1997/1998 – 1998/1999 4% of gross premium

1996/1997 2.5% of gross premium

1996/1997 - 2017/2018

2012/2013 - 2017/2018

Inheritance TaxTapering relief available on gifts made between 3 and 7 years before death.

For deaths on or after 9 October 2007, a transfer of unused nil-rate from a deceased spouse or civil partner may be made to the estate of their surviving spouse or civil partner.

Insurance Premium TaxA higher rate of tax applies on domestic appliances breakdown insurance, travel insurance and insurance sold with TV and car hire from 1 April 1997. From 4 January 2011, this higher rate is 20%. Prior to 2011 it was 17.5%.

Source: HM Treasury

Inheritance Tax2012/2013

(£)

2013/2014

(£)

2014/2015

(£)

2015/2016

(£)

2016/2017 (£)

2017/2018 (£)

Nil Rate Band 325,000 325,000 325,000 325,000 325,000 325,000

Corporation Tax2012/2013

(£)

2013/2014

(£)

2014/2015

(£)

2015/2016

(£)

2016/2017 (£)

2017/2018 (£)

Full Rate 24 23 21 20 20 19Small Companies’ Rate 20 20 20 20 20 19

The Inheritance Tax Nil Rate band is frozen until April 2021, after which point the CPI will be used as the default indexation assumption. From 6 April 2017, a new residence nil rate band applies when the home is passed on to direct descendants. This will be phased in, beginning at £100,000 per individual and increasing by £25,000 each year until it reaches £175,000 in 2020/21. The residence nil rate band is tapered away for estates over £2m.

Until 2014, the Small Companies’ Rate applies to companies with taxable profits up to £300,000; full rate applies to companies with taxable profits over £1,500,000; others benefit from marginal relief. From 2014, there is a single unified rate for all companies.




Tax and Investment InformationValue Added Tax (VAT) / VAT Registration Limits (Post Turnover)

Standard Rate of Value Added Tax (VAT)01/09/1997 to

30/11/200801/12/2008 to

31/12/200901/01/2010 to

03/01/201104/01/2011

onwards

Standard Rate 17.5 15.0 17.5 20.0Reduced Rate – – 5.0 5.0

VAT Registration and De-registration Thresholds

Registration Threshold (£) Deregistration Limit (£)

01/04/2017 onwards 85,000 83,00001/04/2016 – 31/03/2017 83,000 81,00001/04/2015 – 31/03/2016 82,000 80,00001/04/2014 – 01/04/2015 81,000 79,00001/04/2013 – 31/04/2014 79,000 77,00001/04/2012 – 31/03/2013 77,000 75,00001/04/2011 – 31/03/2012 73,000 71,00001/04/2010 – 31/03/2011 70,000 68,00001/05/2009 – 31/03/2010 68,000 66,00001/04/2008 – 30/04/2009 67,000 65,00001/04/2007 – 31/03/2008 64,000 62,00001/04/2006 – 31/03/2007 61,000 59,00001/04/2005 – 31/03/2006 60,000 58,00001/04/2004 – 31/03/2005 58,000 56,00010/04/2003 – 31/03/2004 56,000 54,00025/04/2002 – 09/04/2003 55,000 53,00001/04/2001 – 24/04/2002 54,000 52,00001/04/2000 – 31/03/2001 52,000 50,000

2000 - 2001 onwards

Value Added TaxCertain goods and services are exempt from VAT or charged at a reduced or zero rate.

The VAT rate on fuel is revalorised with effect from 1 May 2011.

Source: HM Treasury / HMRC




Tax and Investment InformationCapital Gains Tax / Individual Savings Account (ISA)

Capital Gains Tax2013/14 2014/15 2015/16 2016/17 2017/2018

Higher Rate 28% 28% 28% 20% 20%

Standard Rate 18% 18% 18% 10% 10%

Annual Exemption (Individuals, Personal Representatives

£10,900 £11,000 £11,100 £11,100 £11,300

Annual Exemption (Trusts) £5,450 £5,500 £5,550 £5,550 £5,650

Entrepreneurs’ Relief effective rate 10% 10% 10% 10% 10%

Entrepreneurs’ Relief lifetime limit £10m £10m £10m £10m £10m

Individual Savings Account (ISA) / New Individual Savings Account (NISA)

Maximum Investment 2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 2017/18

(£) (£) (£) (£) (£) (£)Cash 5,640 5,760 5,940 / 15,000* 15,240 15,240 20,000Stocks & Shares 11,280 11,520 11,880 / 15,000* 15,240 15,240 20,000Overall Limit 11,280 11,520 11,880 / 15,000* 15,240 15,240 20,000

* With effect 1 July 2014, the overall annual limit was increased from £11,880 to £15,000 and the lower cap on cash savings was removed. From this date, the total annual subscription limit can be allocated between a cash and a stocks & shares ISA as decided by the indivdual. From 6 April 2017, the overall annual ISA subscription limit of £20,000 includes any contributions made to a LISA (for which the annual limit is £4,000).

2013/2014 - 2017/2018

2012/2013 - 2017/2018

Capital Gains TaxTrustees and personal representatives are taxed at the higher rate. For others, gains (in excess of the annual exemption) are added to the individual’s taxable income and, to the extent that the resulting amount falls within the basic rate band (£33,500 for 2017/18) are taxed at the lower rate. Where the gains and taxable income has used up the basic rate band, any additional gains are taxed at the higher rate.

Entrepreneurs’ ReliefRelief is available for gains made on the disposal of all or part of a business, or on qualifying assets following the cessation of a business, by certain individuals.

Lifetime ISAA new ‘Lifetime ISA’ was introduced from April 2017. Those aged under 40 are able to open a LISA and will benefit from a government bonus of 25% on contributions paid up to age 50 with an annual contribution limit of £4,000. The proceeds can be used to purchase a first home or for retirement. Withdrawals are allowed in other circumstances subject to loss of bonus.

Sources: HM Treasury




Tax and Investment InformationCar and Fuel Benefits

2011/2012 – 2018/2019

Appropriate Percentage

CO2 emissions (g/km)2011/2012 2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019

5% 1-75 1-75 1-75 1-75 0-50 - - -7% 0-50 - -9% 51-75 - 0-50 -

10% 76 - 120 76 - 99 76 - 94 - - - - -11% - 100 - 104 95 - 99 76 - 94 - 51-75 - -12% - 105 - 109 100 - 104 95 - 99 - - - -13% - 110 - 114 105 - 109 100 - 104 76-94 - 51-75 0-5014% - 115 - 119 110 - 114 105 - 109 95-99 - - -15% 121 - 129 120 - 124 115 - 119 110 - 114 100-104 76-94 - -16% 130 - 134 125 - 129 120 - 124 115 - 119 105-109 95-99 - 51-7517% 135 - 139 130 - 134 125 - 129 120 - 124 110-114 100-104 76-94 -18% 140 - 144 135 - 139 130 - 134 125 - 129 115-119 105-109 95-99 -19% 145 - 149 140 - 144 135 - 139 130 - 134 120-124 110-114 100-104 76-9420% 150 - 154 145 - 149 140 - 144 135 - 139 125-129 115-119 105-109 95 - 9921% 155 - 159 150 - 154 145 - 149 140 - 144 130-134 120-124 110-114 100 - 10422% 160 - 164 155 - 159 150 - 154 145 - 149 135-139 125-129 115-119 105 - 10923% 165 - 169 160 - 164 155 - 159 150 - 154 140-144 130-134 120-124 110 - 11424% 170 - 174 165 - 169 160 - 164 155 - 159 145-149 135-139 125-129 115 - 11925% 175 - 179 170 - 174 165 - 169 160 - 164 150-154 140-144 130-134 120 - 12426% 180 - 184 175 - 179 170 - 174 165 - 169 155-159 145-149 135-139 125 - 12927% 185 - 189 180 - 184 175 - 179 170 - 174 160-164 150-154 140-144 130 - 13428% 190 - 194 185 - 189 180 - 184 175 - 179 165-169 155-159 145-149 135 - 13929% 195 - 199 190 - 194 185 - 189 180 - 184 170-174 160-164 150-154 140 - 14430% 200 - 204 195 - 199 190 - 194 185 - 189 175-179 165-169 155-159 145 - 14931% 205 - 209 200 - 204 195 - 199 190 - 194 180-184 170-174 160-164 150 - 15432% 210 - 214 205 - 209 200 - 204 195 - 199 185-189 175-179 165-169 155 - 15933% 215 - 219 210 - 214 205 - 209 200 - 204 190-194 180-184 170-174 160 - 16434% 220 - 224 215 - 219 210 - 214 205 - 209 195-199 185-189 175-179 165 - 16935% 225 - 220 - 215 - 210 - 200-204 190-194 180-184 170 - 17436% 205-209 195-199 185-189 175 - 17937% 210 - 200 - 190 or more. 180 or more

Appropriate PercentageThe annual value of a company car for tax purposes is obtained by multiplying the list price of the car (prior to 2011/12, this was capped at £80,000) by a figure known as the ‘appropriate percentage’.

The appropriate percentage depends on the car’s CO2 emissions, as in the table and the type of fuel used.

Most diesel cars incur a 3% supplement over the figures given in the table, but are subject to a maximum (37% from 2015/16).

There have been discounts available for environmentally-friendly fuels.

Car Fuel Benefit ChargeThe charge is calculated by taking the appropriate percentage from the table above and applying it to a ‘fuel benefit multiplier’ (£22,600 in 2017/18).

Source: Compiled from Government information




Aon Hewitt Facts & Figures Statistics for the Tax Year 2017/2018 50Aon Hewitt Facts & Figures Statistics for the Tax Year 2017/2018

Social Security




Social SecurityBasic State Retirement Pensions

1995 – 2017

Single Person Married Couple

From £ per week £ per annum £ per week £ per annum

Apr – 2017 122.30 6,359.60 195.60 10,171.20Apr – 2016 119.30 6,203.60 190.80 9,921.60Apr – 2015 115.95 6,029.40 185.45 9,643.40Apr – 2014 113.10 5,881.20 180.90 9,406.80Apr – 2013 110.15 5,727.80 176.15 9,159.80Apr – 2012 107.45 5,587.40 171.85 8,936.20Apr – 2011 102.15 5,311.80 163.35 8,494.20Apr – 2010 97.65 5,077.80 156.15 8,119.80Apr – 2009 95.25 4,953.00 152.30 7,919.60Apr – 2008 90.70 4,716.40 145.05 7,542.60Apr – 2007 87.30 4,539.60 139.60 7,259.20Apr – 2006 84.25 4,381.00 134.75 7,007.00Apr – 2005 82.05 4,266.60 131.20 6,822.40Apr – 2004 79.60 4,139.20 127.25 6,617.00Apr – 2003 77.45 4,027.40 123.80 6,437.60Apr – 2002 75.50 3,926.00 120.70 6,276.40Apr – 2001 72.50 3,770.00 115.90 6,026.80Apr – 2000 67.50 3,510.00 107.90 5,610.80Apr – 1999 66.75 3,471.00 106.70 5,548.40Apr – 1998 64.70 3,364.40 103.40 5,376.80Apr – 1997 62.45 3,247.40 99.80 5,189.60Apr – 1996 61.15 3,179.80 97.75 5,083.00Apr – 1995 58.85 3,060.20 94.10 4,893.20

Those retiring before 6 April 2016 may be entitled to the Basic State Pension.





Social SecurityBasic State Retirement Pensions

1975 – 1994

Those retiring before 6 April 2016 may be entitled to the Basic State Pension.


Single Person Married Couple

From £ per week £ per annum £ per week £ per annum

Apr – 1994 57.60 2,995.20 92.10 4,789.20Apr – 1993 56.10 2,917.20 89.80 4,669.60Apr – 1992 54.15 2,815.80 86.70 4,508.40Apr – 1991 52.00 2,704.00 83.25 4,329.00Apr – 1990 46.90 2,438.80 75.10 3,905.20Apr – 1989 43.60 2,267.20 69.80 3,629.60Apr – 1988 41.15 2,139.80 65.90 3,426.80Apr – 1987 39.50 2,054.00 63.25 3,289.00Jul – 1986 38.70 2,012.40 61.95 3,221.40Nov – 1985 38.30 1,991.60 61.30 3,187.60Nov – 1984 35.80 1,861.60 57.30 2,979.60Nov – 1983 34.05 1,770.60 54.50 2,834.00Nov – 1982 32.85 1,708.20 52.55 2,732.60Nov – 1981 29.60 1,539.20 47.35 2,462.20Nov – 1980 27.15 1,411.80 43.45 2,259.40Nov – 1979 23.30 1,211.60 37.30 1,939.60Nov – 1978 19.50 1,014.00 31.20 1,622.40Nov – 1977 17.50 910.00 28.00 1,456.00Nov – 1976 15.30 795.60 24.50 1,274.00Nov – 1975 13.30 691.60 21.20 1,102.40




Social SecurityNational Insurance Contribution Rates

Weekly limitby Tax Year

Monthly limits Employer Employee

c/out COSR(%)

c/out COMP(%)

not c/out(%)

c/out(%)

not c/out(%)

2017/2018

£113 - £157 (ST & PT) £490 - £680 N/A N/A nil N/A nil

£157 - £866 (UEL) £680 - £3,750 N/A N/A 13.80 N/A 12.00

Above £866 (UEL) Above £3,750 N/A N/A 13.80 N/A 2.00

2016/2017

£112 - £155 (PT) £486 - £672 N/A N/A nil N/A nil

£155 - £156 (ST) £672 - £676 N/A N/A nil N/A 12.00

£156 - £827 (UEL) £676 - £3,583 N/A N/A 13.80 N/A 12.00

Above £827 (UEL) Above £3,583 N/A N/A 13.80 N/A 2.00

2015/2016

£112 - £155 (ST) £486 - £672 (-3.4) N/A nil (-1.4) nil

£155 - £156 (PT) £672 - £676 (-3.4) N/A nil 10.60 12.00

£156 - £770 (UAP) £676 - £3,337 10.40 N/A 13.80 10.60 12.00

£770 - £815 (UEL) £3,337 - £3,532 13.80 N/A 13.80 12.00 12.00

Above £815 (UEL) Above £3,532 13.80 N/A 13.80 2.00 2.00

2014/2015

£111 – £153 (ST & PT) £481 – £663 (-3.4) N/A nil (-1.4) nil

£153 – £770 (UAP) £663 – £3,337 10.40 N/A 13.80 10.60 12.00

£770 (UAP) – £805 £3,337 – £3,489 13.80 N/A 13.80 12.00 12.00



2014/2015 – 2017/2018

National Insurance Contribution RatesLEL = Lower Earnings Limit ST = Secondary Threshold PT = Primary Threshold UAP = Upper Accrual Point UEL = Upper Earnings Limit

No contributions are payable:

For employees on any earnings below the PT.

For employers on employees’ earnings below the ST.

The PT and ST are increased in line with the CPI and RPI respectively. The different rates of increase have resulted in the ST being higher than the PT in some years and vice versa in others (and for some years they have been equal).

From year 2012/2013, contracting out on a money purchase basis is abolished. Contracting out on a salary related basis is abolished from April 2016.

From April 2015 a zero rate band is introduced for employer contributions in respect of employees under the age of 21, on earnings below the UEL (and for 2015/16 a 3.4% ‘rebate’ is given in respect of contracted-out earnings between ST and UAP). A similar zero rate band is introduced from 2016/17 for apprentices under age 25.





Social SecurityState Scheme Earnings Limits

by Tax Year LEL UEL * UAP * LET MET

£ pa £ pa £ pa £ pa £ pa

2017/2018 5,876 45,032 40,040 N/A N/A

2016/2017 5,824 43,004 40,040 N/A N/A

2015/2016 5,824 42,385 40,040 15.300 N/A

2014/2015 5,772 41,865 40,040 15,100 N/A

2013/2014 5,668 41,450 40,040 15,000 N/A

2012/2013 5,564 42,475 40,040 14,700 N/A

2011/2012 5,304 42,475 40,040 14,400 N/A

2010/2011 5,044 43,875 40,040 14,100 N/A

2009/2010 4,940 43,875 40,040 13,900 31,800

2008/2009 4,680 40,040 40,040 13,500 31,100

2007/2008 4,524 34,840 - 13,000 30,000

2006/2007 4,368 33,540 - 12,500 28,800

2005/2006 4,264 32,760 - 12,100 27,800

2004/2005 4,108 31,720 - 11,600 26,600

2003/2004 4,004 30,940 - 11,200 25,600

* From 6 April 2009, the Upper Earnings Limit (UEL) is replaced by a fixed Upper Accrual Point (UAP) for S2P calculation purposes.

This will not be increased in future years. The UEL remains relevant for National Insurance contributions.

2003/2004 – 2017/2018

National Insurance Contribution Rates Thresholds and Accrual PointThe Low Earnings Threshold (LET) and the Middle Earnings Threshold (MET) are required for the State Second Pension (S2P) from 6 April 2002.

Changes in the LET are announced each year by the Secretary of State, but the MET is an unofficial name for a figure defined in legislation.

The MET figures here are calculated by Aon Hewitt, and represent 3xLET – 2xLEL being rounded to the nearest whole £100.

From 6 April 2010, the MET has no practical application as S2P accrues in only two bands from that date.

Following the introduction of the new State Pension, from 6 April 2016 these limits and thresholds are no longer needed directly in the calculation of state pension amounts.





Social SecuritySERPS and State Second Pension

2002/03 – 2017/18

The State Earnings-Related Pension Scheme (SERPS) started accruing on 6 April 1978. It was initially intended to result in a pension of 25% of a person’s average earnings assuming contributions over a full working lifetime. Here ‘working lifetime’ is defined in terms of the individual’s sex and date of birth. Only ‘band earnings’ between the LEL and UEL were counted, but these are revalued up to State Pension Age.

In 1988 the scheme was modified, reducing the target pension from 25%, ultimately to 20%

In April 2002, SERPS was replaced for earnings after that date by the State Second Pension (S2P). In S2P, band earnings are split into tranches. Each tranche had a different target pension, as shown in the following table:

2002/03 – 2008/09 Target** 2009/10 Target** 2010/11 – 2011/12 Target**

LEL to LET 40% LEL to LET 40% LEL to LET 40%LET to MET* 10% LET to MET* 10% LET to UAP 10%MET to UEL 20% MET to UAP 20%

* See previous page for explanation of MET

** The target pension is a percentage of the relevant tranche of earnings, which is given at State Pension Age after a full working life

Anyone with earnings between the LEL and the LET is treated as if their earnings are at the LET level.

From 2012, the lower band (where earnings are between LEL and LET) became flat rate; and from that time the upper band target pension (10% of earnings between LET and UAP) was redesigned so as to be reached for everyone after 44 years, irrespective of sex and date of birth.

From April 2016 S2P and the Basic State Retirement Pension (see page 51) is replaced by a single, flat rate, state pension (£159.55 for 2017/18). Transitional arrangements protect those whose accrued entitlement in 2016 under the previous system was greater than the new flat rate. At the same time as the flat rate pension is introduced, contracting out was abolished.




Social SecurityContracting-out Rebates

1978/1979 – 2015/2016

Tax Year Employer COSR (%) Employer COMP (%) Employee (%)2012/2013 – 2015/2016 ** 3.40 N/A* 1.40

2007/2008 – 2011/2012 3.70 1.40 1.60

2002/2003 – 2006/2007 3.50 1.00 1.60

1999/2000 – 2001/2002 3.00 0.60 1.60

1997/1998 – 1998/1999 3.00 1.50 1.60

1993/1994 – 1996/1997 3.00 3.00 1.80

1988/1989 – 1992/1993 3.80 3.80 2.00

1983/1984 – 1987/1988 4.10 2.15

1978/1979 – 1982/1983 4.50 2.50

From 6 April 1997, a new system of rebates was introduced. For Contracted-out Money Purchase Schemes* the flat-rate rebate reduced the contributions payable by employers and employees. In addition, age-related payments were made annually by National Insurance Services to Pension Industry (NISPI) (or HM Revenue & Customs (HMRC) from 1/4/1999). The actual amount received from HMRC by Appropriate Personal Pension Schemes* also included an element of tax relief on part of the rebate.

Before 6 April 1997, occupational money purchase schemes received the same contracting-out rebates as salary-related schemes, irrespective of members’ ages.

With effect from 2016/17, contracting out is abolished.

* From 2012/13 it is no longer possible to contract out on a money purchase basis

** S2P is replaced by the new single tier state pension from 2016 (at which point all contracting out ceases).





Social SecuritySection 148 Orders: Revaluation of Earnings Factors

1994/1995 – 2017/2018

Tax Year of Earnings

Tax Year of Termination

2017-2018(%)

2016-2017(%)

2015-2016(%)

2014-2015(%)

2013-2014(%)

2012-2013(%)

2011-2012(%)

2010-2011(%)

2009-2010(%)

2008-2009(%)

2007-2008(%)

2017-2018 0.02016-2017 2.6 0.02015-2016 4.7 2.0 0.02014-2015 6.2 3.5 1.5 0.02013-2014 7.2 4.5 2.4 0.9 0.02012/2013 9.1 6.3 4.3 2.7 1.8 0.02011/2012 11.1 8.3 6.1 4.6 3.6 1.8 0.02010/2011 13.6 10.7 8.6 7.0 6.0 4.1 2.3 0.02009/2010 15.0 12.1 9.9 8.3 7.3 5.4 3.5 1.2 0.02008/2009 18.6 15.5 13.3 11.6 10.6 8.7 6.7 4.3 3.1 0.02007/2008 23.5 20.4 18.0 16.3 15.3 13.2 11.2 8.7 7.4 4.2 0.02006/2007 28.6 25.3 22.9 21.1 20.0 17.9 15.8 13.2 11.8 8.5 4.12005/2006 33.0 29.6 27.1 25.2 24.1 21.9 19.7 17.0 15.6 12.2 7.62004/2005 38.4 34.9 32.3 30.3 29.2 26.9 24.6 21.8 20.4 16.8 12.12003/2004 43.7 40.0 37.3 35.3 34.1 31.7 29.4 26.5 25.0 21.2 16.32002/2003 48.9 45.1 42.2 40.1 38.9 36.4 34.0 31.0 29.5 25.6 20.52001/2002 55.3 51.3 48.4 46.2 44.9 42.3 39.8 36.6 35.0 31.0 25.72000/2001 61.5 57.4 54.3 52.0 50.7 48.0 45.4 42.1 40.4 36.2 30.71999/2000 71.6 67.3 64.0 61.6 60.1 57.3 54.5 51.1 49.3 44.8 38.91998/1999 78.8 74.3 70.9 68.4 66.9 63.9 61.0 57.4 55.5 50.9 44.81997/1998 87.1 82.3 78.8 76.1 74.5 71.5 68.4 64.6 62.7 57.8 51.41996/1997 96.4 91.4 87.7 84.9 83.3 80.0 76.8 72.9 70.8 65.7 59.01995/1996 101.9 96.8 93.0 90.1 88.4 85.1 81.8 77.7 75.6 70.3 63.51994/1995 110.8 105.5 101.4 98.5 96.7 93.2 89.8 85.5 83.3 77.8 70.7






1980/1981 – 1993/1994



2017-2018(%)

2016-2017(%)

2015-2016(%)

2014-2015(%)

2013-2014(%)

2012-2013(%)

2011-2012(%)

2010-2011(%)

2009-2010(%)

2008-2009(%)

2007-2008(%)

1993/1994 117.3 111.8 107.7 104.6 102.8 99.2 95.7 91.3 89.0 83.3 75.9

1992/1993 128.2 122.4 118.1 114.8 112.9 109.2 105.5 100.8 98.5 92.5 84.7

1991/1992 143.0 136.9 132.2 128.8 126.8 122.8 118.8 113.9 111.4 105.0 96.7

1990/1991 167.6 160.8 155.7 151.9 149.7 145.3 140.9 135.5 132.7 125.7 116.6

1989/1990 187.1 179.9 174.4 170.3 167.9 163.2 158.5 152.7 149.7 142.2 132.4

1988/1989 218.1 210.1 204.0 199.5 196.8 191.6 186.4 180.0 176.7 168.4 157.5

1987/1988 245.8 237.1 230.4 225.6 222.7 217.0 211.3 204.3 200.7 191.7 179.9

1986/1987 271.4 262.0 254.9 249.7 246.5 240.4 234.4 226.9 223.0 213.3 200.7

1985/1986 304.5 294.2 286.5 280.8 277.4 270.7 264.2 256.0 251.7 241.2 227.4

1984/1985 331.2 320.2 312.0 305.9 302.3 295.2 288.2 279.5 275.0 263.7 249.0

1983/1984 365.7 353.9 345.0 338.4 334.5 326.8 319.2 309.8 305.0 292.8 276.9

1982/1983 401.5 388.8 379.2 372.1 367.9 359.6 351.5 341.4 336.1 323.0 306.0

1981/1982 452.2 438.2 427.6 419.8 415.2 406.1 397.1 385.9 380.2 365.7 347.0

1980/1981 559.3 542.6 530.0 520.7 515.1 504.3 493.6 480.2 473.3 456.1 433.7






1984/1985 – 2006/2007



2005-2006(%)

2004-2005(%)

2003-2004(%)

2002-2003(%)

2001-2002(%)

2000-2001(%)

1999-2000(%)

1998-1999(%)

1997-1998(%)

1996-1997(%)

2006/2007 0.0

2005/2006 3.4 0.0

2004/2005 7.6 4.1 0.0

2003/2004 11.7 8.1 3.8 0.0

2002/2003 15.8 11.9 7.5 3.6 0.0

2001/2002 20.7 16.8 12.2 8.1 4.3 0.0

2000/2001 25.6 21.4 16.6 12.4 8.5 4.0 0.0

1999/2000 33.5 29.1 24.0 19.5 15.3 10.6 6.3 0.0

1998/1999 39.1 34.5 29.2 24.5 20.1 15.2 10.8 4.2 0.0

1997/1998 45.5 40.7 35.1 30.2 25.7 20.5 15.9 9.4 4.6 0.0

1996/1997 52.7 47.7 41.9 36.7 32.0 26.5 21.7 14.1 9.8 5.0

1995/1996 57.0 51.9 45.9 40.5 35.7 30.1 25.1 17.6 12.9 8.0

1994/1995 63.9 58.5 52.3 46.7 41.6 35.8 30.6 22.8 17.9 12.7

1993/1994 69.0 63.5 57.0 51.3 46.0 40.0 34.6 26.6 21.6 16.3

1992/1993 77.5 71.6 64.9 58.8 53.3 47.0 41.3 33.0 27.7 22.1

1991/1992 89.0 82.8 75.6 69.2 63.3 56.5 50.5 41.5 35.9 30.0

1990/1991 108.1 101.2 93.3 86.2 79.8 72.4 65.7 55.8 49.7 43.1

1989/1990 123.3 115.9 107.4 99.8 92.9 84.9 77.8 67.2 60.6 53.5

1988/1989 147.4 139.3 129.8 121.4 113.7 104.9 97.0 84.6 77.3 69.5

1987/1988 168.9 160.1 149.8 140.7 132.3 122.7 114.2 100.8 92.9 84.4

1986/1987 188.8 179.3 168.3 158.5 149.5 139.2 130.0 115.6 107.0 97.9

1985/1986 214.5 204.2 192.2 181.5 171.7 160.5 150.5 134.7 125.4 115.5

1984/1985 235.3 224.3 211.5 200.1 189.7 177.7 167.0 150.1 140.2 129.6





Social SecurityDeferred Pension Revaluation Percentages

2010 – 2017

Calendar Year of Normal Pension Age

Number of complete years since leaving

2017 2016 2015 2014 2013 2012 2011 2010

H (%) L (%) H (%) L (%) H (%) L (%) H (%) L (%) H (%) L (%) H (%) L (%) H (%) L (%) H (%) L (%)

1 1.0 1.0 0.0 0.0 1.2 1.2 2.7 2.5 2.2 2.5 5 2.5 3.1 2.5 0.0 0.02 0.9 0.9 1.1 1.1 3.9 3.9 5.0 5.0 7.5 5.1 8.5 5.1 1.7 1.7 3.5 N/A3 2.1 2.1 3.8 3.8 6.2 6.2 10.4 7.7 10.8 6.9 6.9 6.9 6.7 N/A 7.6 N/A4 4.9 4.9 6.1 6.1 11.7 10.4 13.8 10.4 9.3 N/A 12.3 N/A 10.9 N/A 11.4 N/A5 7.2 7.2 11.6 11.6 15.2 13.1 12.2 12.2 14.8 N/A 16.7 N/A 14.9 N/A 14.4 N/A6 12.7 12.7 15.1 15.1 13.6 13.6 17.9 N/A 19.2 N/A 20.9 N/A 18.0 N/A 18.0 N/A7 16.2 16.2 13.5 13.5 19.3 N/A 22.5 N/A 23.5 N/A 24.1 N/A 21.7 N/A 21.3 N/A8 14.6 14.6 19.2 N/A 23.9 N/A 26.9 N/A 26.9 N/A 28 N/A 25.1 N/A 23.4 N/A9 20.3 N/A 23.8 N/A 28.4 N/A 30.3 N/A 30.8 N/A 31.6 N/A 27.2 N/A 25.5 N/A10 25.0 N/A 28.3 N/A 31.9 N/A 34.3 N/A 34.5 N/A 33.8 N/A 29.3 N/A 29.6 N/A11 29.5 N/A 31.7 N/A 35.9 N/A 38.1 N/A 36.7 N/A 36.1 N/A 33.6 N/A 31.0 N/A12 33.0 N/A 35.8 N/A 39.7 N/A 40.4 N/A 39.1 N/A 40.6 N/A 35.1 N/A 35.2 N/A13 37.2 N/A 39.6 N/A 42.1 N/A 42.8 N/A 43.7 N/A 42.1 N/A 39.4 N/A 40.1 N/A14 41.0 N/A 42.0 N/A 44.5 N/A 47.5 N/A 45.2 N/A 46.7 N/A 44.4 N/A 43.0 N/A15 43.4 N/A 44.4 N/A 49.3 N/A 49.2 N/A 49.9 N/A 51.9 N/A 47.5 N/A 48.6 N/A16 45.8 N/A 49.2 N/A 51.0 N/A 53.9 N/A 55.3 N/A 55.1 N/A 53.2 N/A 51.9 N/A17 50.6 N/A 50.8 N/A 55.8 N/A 59.5 N/A 58.5 N/A 61.2 N/A 56.6 N/A 54.6 N/A18 52.3 N/A 55.6 N/A 61.4 N/A 62.8 N/A 64.7 N/A 64.7 N/A 59.4 N/A 60.2 N/A19 57.2 N/A 61.2 N/A 64.8 N/A 69.2 N/A 68.4 N/A 67.7 N/A 65.1 N/A 66.7 N/A20 62.8 N/A 64.6 N/A 71.2 N/A 72.9 N/A 71.4 N/A 73.7 N/A 71.9 N/A 84.9 N/A21 66.3 N/A 71.0 N/A 75.0 N/A 76.0 N/A 77.6 N/A 80.9 N/A 90.7 N/A 99.0 N/A22 72.7 N/A 74.8 N/A 78.1 N/A 82.3 N/A 84.8 N/A 100.6 N/A 105.1 N/A 110.3 N/A23 76.5 N/A 77.9 N/A 84.5 N/A 89.8 N/A 105.0 N/A 115.8 N/A 116.8 N/A 119.1 N/A24 79.7 N/A 84.3 N/A 92.1 N/A 110.5 N/A 120.6 N/A 128.1 N/A 125.9 N/A 125.9 N/A25 86.2 N/A 91.9 N/A 113.0 N/A 126.5 N/A 133.1 N/A 137.7 N/A 132.9 N/A26 93.8 N/A 112.8 N/A 129.2 N/A 139.4 N/A 142.9 N/A 145.1 N/A27 115.0 N/A 129.0 N/A 142.3 N/A 149.5 N/A 150.4 N/A28 131.3 N/A 142.1 N/A 152.5 N/A 157.2 N/A29 144.5 N/A 152.2 N/A 160.3 N/A

Deferred Pension Revaluation Percentages

The table shows the percentage revaluations set out each year in the Occupational Pensions (Revaluation) Order.

Where two figures are shown the figure in the High column (H) represents price inflation limited to 5% pa (for service prior to 6 April 2009) and the figure in the Low column (L) represents inflation limited to 2.5% pa (for service after 5 April 2009).

Prior to 2011, price inflation has been based on the RPI; from that date, CPI is used.




Miscellaneous

61Aon Hewitt Facts & Figures Statistics for the Tax Year 2017/2018





MiscellaneousGuaranteed Minimum Pension (GMP) Increase Orders / GMP Fixed Revaluation Rates / Pension Schemes Earnings Cap - Permitted Maximum / Lifetime and Annual Allowances

Guaranteed Minimum Pension (GMP) Increase OrdersDate of Increase

(6 April)

2009

(%)

2010

(%)

2011

(%)

2012

(%)

2013

(%)

2014

(%)

2015

(%)

2016

(%)

2017

(%)

Increase 3.0 3.0 0.0 3.0 3.0 2.2 1.2 0.0 1.0

GMP Fixed Revaluation RatesDate of termination of contracted-out service

1988/89 – 1992/93

1993/94 – 1996/97

1997/98 – 2001/02

2002/03 – 2006/07

2007/08 – 2011/12

2012/13 - 2016/17

2017/18 –

Revaluation rate (% compound) 7.5 7.0 6.25 4.5 4.0 4.75 3.5

Pension Schemes Earnings Cap – Permitted MaximumTax Year 2009/2010

(%)

2010/2011

(%)

2011/2012

(%)

2012/2013

(%)

2013/2014

(%)

2014/2015

(%)

2015/2016

(%)

2016/2017

(%)

2017/2018

(%)

Earnings Cap 123,600 123,600 129,600 137,400 141,000 or 141,600

145,800 or

146,400

149,400 or

150,000

150,600 or

151,200

154,200 or

154,800

The figures shown are notional ones, which until 2010/2011 were calculated by HMRC based on the method previously set out in legislation (s590C Income and Corporation Taxes Act 1988). After that date, the figures have been calculated by Aon Hewitt. However some lawyers have expressed uncertainty as to whether s590C would have used a rounded percentage increase in the RPI or the unrounded ratio of the underlying index. Up to 2012/13 this uncertainty has not been relevant as the subsequent rounding up of the figure to the next £600 in the final stage of the calculation has resulted the two approaches giving the same answer. However from 2013/14 the two methods give different answers, and both are shown above.

Lifetime and Annual AllowancesTax Year 2011/2012

(£)

2012/2013

(£)

2013/2014

(£)

2014/2015

(£)

2015/2016

(£)

2016/2017

(£)

2017/2018

(£)

Lifetime Allowance 1,800,000 1,500,000 1,500,000 1,250,000 1,250,000 1,250,000 1,000,000

Annual Allowance 50,000** 50,000 50,000 40,000 40,000 40,000 40,000

MP Annual Allowance # 10,000 10,000** Transitional arrangements apply where the 2011/12 Pension Input Period commenced before 14 October 2010#From April 2015 if an individual ‘flexibly accesses’ his money purchase benefits, any further money purchase contributions will be tested against a lower money purchase annual allowance. Legislation to reduce the MPAA from £10,000 to £4,000 for 2017/2018 was dropped from the Finance Bill 2017 in the run up to the General Election, but could be re-introduced.

Guaranteed Minimum Pension Increase OrdersIncrease in post 5 April 1988 GMPs.

Pension Schemes Earnings CapPrior to 6 April 2006, legislation included a cap on the earnings that could be used for the calculation of contributions to, and benefits from, pension schemes.

Annual AllowanceTapered annual allowance for high-earners: From April 2016, the annual allowance for ‘High Income Individuals’ is reduced by £1 for every £2 by which ‘adjusted income’ exceeds £150,000, down to a minimum annual allowance of £10,000.





MiscellaneousAon Hewitt Pension Risk Tracker – FTSE(TM) 100 Companies

15/16 - 16/17

Date Accounting Assets (£bn)

Accounting Liabilities (£bn)

Wind-up Assets (£bn)

Wind-up Liabilities (£bn)

Mar 625.0 654.5 622.4 820.2Feb 620.8 653.8 618.2 822.0Jan 601.3 638.1 598.7 802.2Dec 609.1 644.3 606.5 811.9Nov 588.1 624.8 585.6 792.9Oct 602.0 657.4 599.4 838.4Sep 617.0 677.0 614.5 865.8Aug 625.6 695.0 623.1 886.8Jul 603.3 628.8 600.8 835.6Jun 584.0 604.7 581.4 831.5May 550.8 561.8 548.3 760.0Apr 16/17 541.7 553.0 539.2 749.9Mar 544.9 557.5 542.4 780.8Feb 539.0 539.1 536.5 794.2Jan 534.6 550.1 532.1 788.6Dec 528.0 540.9 525.5 752.4Nov 536.8 560.7 534.4 775.5Oct 531.5 547.8 529.1 772.0Sep 525.6 550.8 523.2 784.4Aug 529.6 558.2 527.1 783.0Jul 544.3 572.7 541.9 782.2Jun 531.9 558.2 529.5 761.9May 555.1 583.7 552.7 783.0Apr 15/16 551.3 584.5 548.9 784.0

The table gives the total assets and liabilities at month end of all pension schemes of companies in the FTSE100 equity index on an ‘accounting’ and ‘wind-up’ valuation basis. The information is based on figures disclosed in publicly available accounts as at the end of the month. Values previously reported will change as new information is made available, and from time to time as the constituent companies in the FTSE index are revised. Data shown here will therefore differ from figures published in previous versions of Facts & Figures.

Asset values are adjusted in line with index movements based on holdings in the major asset categories. The accounting liabilities are adjusted in line with yields on AA corporate bonds of appropriate duration. The wind-up liabilities are adjusted in line with yields on Government bonds of appropriate duration.

Data is correct at April 2017.

Source: Aon Hewitt





13/14 - 14/15






The table gives the total assets and liabilities at month end of all pension schemes of companies in the FTSE100 equity index on an ‘accounting’ and ‘wind-up’ valuation basis. The information is based on figures disclosed in publicly available accounts as at the end of the month. Values previously reported will change as new information is made available, and from time to time as the constituent companies in the FTSE index are revised. Data shown here will therefore differ from figures published in previous versions of Facts & Figures.



Source: Aon Hewitt




MiscellaneousAon Hewitt Pension Risk Tracker – FTSE(TM) 100 Companies (Accounting Assets vs Liabilities)

2013 – 2017

Accounting Assets (£bn)


JAN2017

OCT2016

JUL2016

APR2016

JAN2016

OCT2015

JUL2015

APR2015

JAN2015

OCT2014

JUL2014

APR2014

JAN2014

OCT2013

JUL2013

APR2013

400

500

600

700

800




MiscellaneousAon Hewitt Pension Risk Tracker – FTSE(TM) 100 Companies (Wind-up Assets vs Liabilities)

2012 – 2016



JAN2017

OCT2016

JUL2016

APR2016

JAN2016

OCT2015

JUL2015

APR2015

JAN2015

OCT2014

JUL2014

APR2014

JAN2014

OCT2013

JUL2013

APR2013

400

600

800

1000





15/16 - 16/17






The table gives the total assets and liabilities at month end of all pension schemes of companies in the FTSE250 equity index on an ‘accounting’ and ‘wind-up’ valuation basis. The information is based on figures disclosed in publicly available accounts, as at the end of the month. Values previously reported will change as new information is made available, and from time to time as the constituent companies in the FTSE index are revised. Data shown here will therefore differ from figures published in previous versions of Facts & Figures.



Source: Aon Hewitt





13/14 - 14/15






The table gives the total assets and liabilities at month end of all pension schemes of companies in the FTSE250 equity index on an ‘accounting’ and ‘wind-up’ valuation basis. The information is based on figures disclosed in publicly available accounts, as at the end of the month. Values previously reported will change as new information is made available, and from time to time as the constituent companies in the FTSE index are revised. Data shown here will therefore differ from figures published in previous versions of Facts & Figures.



Source: Aon Hewitt




MiscellaneousAon Hewitt Pension Risk Tracker – FTSE(TM) 250 Companies (Accounting Assets vs Liabilities)

2012 – 2016

Accounting Assets (£bn)


JAN2017

OCT2016

JUL2016

APR2016

JAN2016

OCT2015

JUL2015

APR2015

JAN2015

OCT2014

JUL2014

APR2014

JAN2014

OCT2013

JUL2013

APR2013

50

60

70

80




MiscellaneousAon Hewitt Pension Risk Tracker – FTSE(TM) 250 Companies (Wind-up Assets vs Liabilities)

2012 – 2016



40

JAN2017

OCT2016

JUL2016

APR2016

JAN2016

OCT2015

JUL2015

APR2015

JAN2015

OCT2014

JUL2014

APR2014

JAN2014

OCT2013

JUL2013

APR2013

60

80

100




MiscellaneousPension Protection Fund 7800 Index

15/16 – 16/17

Date Aggregate Assets (£bn)

Aggregate Liabilities (£bn)

Aggregate Balance (£bn)

Mar 1518.8 1745.3 -226.5Feb 1511.1 1753.1 -242.0Jan 1467.2 1663.6 -196.4Dec 1476.4 1700.3 -223.9Nov 1443.1 1637.8 -194.7Oct 1460.0 1735.9 -275.9Sep 1474.6 1848.1 -373.5Aug 1486.3 1899.4 -413.1Jul 1458.4 1791.8 -333.4Jun 1420.3 1724.8 -304.5May 1350.1 1563.7 -213.6Apr - 16/17 1333.1 1521.8 -188.7Mar 1341.4 1563.1 -221.7Feb 1301.0 1595.5 -294.5Jan 1286.8 1563.6 -276.8Dec 1275.2 1469.8 -194.6Nov 1281.7 1503.2 -221.5Oct 1269.9 1486.7 -216.8Sep 1253.9 1513.9 -260.0Aug 1256.4 1489.6 -233.2Jul 1278.4 1487.1 -208.7Jun 1259.5 1441.6 -182.1May 1294.5 1495.4 -200.9Apr - 15/16 1286.7 1489.6 -202.9

PPF7800 Index

The figures in the table show the estimated aggregate funding position, on a section 179 valuation basis, of some 5,800 predominantly private sector defined benefit (DB) pension schemes and DB elements of hybrid schemes in the UK.

The estimates are based on scheme valuation data, which has been adjusted to consistent dates on an approximate basis, using changes in market indices for principal asset classes, and in the fixed interest and index-linked gilt yields used to value liabilities.

There was a change in the s179 valuation basis in December 2016 which resulted in an improvement in the funding ratio of 1.5% due to a reduction in the aggregate balance of some £29.5bn. The assumptions had previously been revised in May 2014.

From November 2015 the updates reflect a new dataset consistent with ‘the Purple Book 2015’, estimated to include over 99 per cent of liabilities of PPF eligible schemes. The impact of the change was to improve the funding ratio at October 2015 by 0.9 per cent and the aggregate balance by some £18bn.

All figures have been updated by the PPF to take account of more accurate data. The data shown here are the revised figures and will therefore differ from those shown in previous versions of Facts & Figures.

Source: Pension Protection Fund





13/14 - 14/15

Date Aggregate Assets (£bn)

Aggregate Liabilities (£bn)

Aggregate Balance (£bn)

Mar 1298.3 1542.5 -244.2Feb 1263.4 1512.1 -248.7Jan 1273.8 1641.2 -367.5Dec 1236.6 1502.9 -266.3Nov 1232.9 1454.0 -221.1Oct 1198.5 1363.5 -164.9Sep 1186.0 1330.0 -144.0Aug 1195.5 1347.0 -151.5Jul 1161.3 1254.5 -93.2Jun 1155.7 1232.5 -76.8May 1159.1 1247.5 -88.4Apr - 14/15 1143.3 1184.0 -40.8Mar 1137.5 1176.8 -39.3Feb 1148.6 1209.8 -61.2Jan 1130.4 1206.8 -76.5Dec 1133.0 1160.5 -27.6Nov 1132.9 1192.5 -59.6Oct 1139.1 1214.7 -75.6Sep 1114.0 1199.0 -85.0Aug 1105.9 1186.2 -80.3Jul 1126.1 1214.4 -88.3Jun 1098.0 1202.9 -104.9May 1126.3 1284.7 -158.4Apr - 13/14 1127.4 1358.8 -231.3

PPF7800 Index

The figures in the table show the estimated aggregate funding position, on a section 179 valuation basis, of some 5,800 predominantly private sector defined benefit (DB) pension schemes and DB elements of hybrid schemes in the UK.

The estimates are based on scheme valuation data, which has been adjusted to consistent dates on an approximate basis, using changes in market indices for principal asset classes, and in the fixed interest and index-linked gilt yields used to value liabilities.

There was a change in the s179 valuation basis in December 2016 which resulted in an improvement in the funding ratio of 1.5% due to a reduction in the aggregate balance of some £29.5bn. The assumptions had previously been revised in May 2014.

From November 2015 the updates reflect a new dataset consistent with ‘the Purple Book 2015’, estimated to include over 99 per cent of liabilities of PPF eligible schemes. The impact of the change was to improve the funding ratio at October 2015 by 0.9 per cent and the aggregate balance by some £18bn.

All figures have been updated by the PPF to take account of more accurate data. The data shown here are the revised figures and will therefore differ from those shown in previous versions of Facts & Figures.

Source: Pension Protection Fund





Estimated s179 Aggregate Balance: Total assets Less Total Liabilities

-450

-400

-350

-300

-250

-200

-150

-100

-50

0

APR2013

APR2014

APR2015

APR2016

APR2017

2013 – 2017

PPF7800 IndexSource: Pension Protection Fund



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