UK’s PensionBee noted that pension funds could be headed for another year of strong returns in 2025, according to predictions from investment banks, including JP Morgan, Morgan Stanley, and Bank of America.
PensionBee explained in a blog post that the bull run in US stocks is expected to continue while other global markets should be “supported by an environment of moderate growth, disinflation and monetary easing.”
PensionBee also mentioned that risks on the horizon include geopolitical challenges and uncertainties around the “change of leadership in the US, which could usher in policy changes or trade tariffs with far-reaching impact.”
According to the update from PensionBee, pension savers should find their retirement pot is boosted by “another year of strong investment returns, provided they are exposed to the right markets.”
PensionBee added that the optimistic outlook for markets is a “bright spot amid an often gloomy narrative about the economy, the high cost of living and Britons’ retirement prospects.”
Annabelle Williams, Spokesperson for PensionBee, explained that people tend to under-appreciate the importance of investment returns and the magic of compounding to boost returns. If you have a pension, you are an investor, and where your money is invested matters.
Savers may be “underestimating” the potential growth of their pensions, analysis from PensionBee, an online pension provider, has found.
PensionBee’s Pension Performance Benchmark analysis which tracks the returns of leading pension providers found that the “average annual growth over five years was close to 8% for those 30 years from retirement, whereas savers anticipated returns of 5-7%.”