The COVID-19 pandemic has placed charities under significant financial strain over the past year, with fundraising and retail income particularly badly hit. While charities are preserving cash, their DB pension schemes continue to require substantial funding. 

On top of this, charities need to start planning for a new DB funding regime, which requires more prudent funding targets and quicker repayment of deficits. There is a delicate balancing act between ensuring the sustainability of charities and funding pension deficits.

Some of our key findings are: