Hackney Pension Fund reports strong growth

The Hackney Pension Fund has reported a significant increase in its funding level, reaching 138% at the 2025 valuation, a notable rise from 106% in 2022. At the 2025 valuation, the Fund held assets of around £2.1 billion in comparison to liabilities of £1.5 billion, resulting in a funding surplus of approximately £600 million. This marks a substantial improvement from the 2022 valuation, when the Fund held assets of just under £2 billion against liabilities of around £1.8 billion, leading to a surplus of about £100 million.

Hands holding coins with a small plant growing from them, symbolizing investment growth.
Hands holding coins with a small plant growing from them, symbolizing investment growth.

This growth is largely attributed to expectations of higher future investment returns, driven by changes in the economic environment and interest rates. Specifically, there has been a significant shift in interest rates, increasing from the 2022 valuation to a peak of around 4.75% before the 2025 valuation date. As this is considered a 'risk-free rate', it follows that the Fund, being invested in riskier assets, would receive higher returns than this benchmark.

The Fund's liabilities have also seen a reduction, falling to £1.5 billion from around £1.8 billion. This improvement is largely due to the revised investment outlook, which anticipates higher returns from the Fund's assets.

Pie chart illustrating the asset allocation of the Hackney Pension Fund, detailing percentages for equities, liquid markets, illiquid credit, and various other investment categories.
Pie chart illustrating the asset allocation of the Hackney Pension Fund, detailing percentages for equities, liquid markets, illiquid credit, and various other investment categories.

The valuation results for the London Borough of Hackney Pension Fund showed an improved funding level of 138% at the 2025 valuation, up from 106% at the 2022 valuation. This improvement was attributed to a reduction in the Fund's liabilities, largely driven by expectations of higher future investment returns due to changes in the economic environment and interest rates. The Fund also increased its prudence margin associated with the discount rate assumption to reflect market volatility. This increase in the prudence margin brought the funding surplus down slightly.

As of 31 March 2025, the Hackney Pension Fund had 7,592 active members, 11,635 deferred members, and 8,759 pensioner members and dependants.

Stacked bar chart showing the number of active members, deferred members, and pensioners & dependants in the Hackney Pension Fund from October 2025 to March 2026.
Stacked bar chart showing the number of active members, deferred members, and pensioners & dependants in the Hackney Pension Fund from October 2025 to March 2026.

Further details on the Fund's performance and valuations can be found in the Public reports pack for the Pensions Board meeting on 8 July 2026.

Public reports pack Wednesday 08-Jul-2026 10.00 Pensions Board