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Navigating 2025: Market outlook and implications for defined benefit pension schemes

The global economic outlook for 2025 looks promising but also presents challenges.

Inflation is expected to moderate amidst steady U.S. growth, resiliency amongst some emerging markets, and shifting geopolitical and trade dynamics. According to the IMF, global GDP growth is expected to align with its long-term average, marginally above 3%. However, risks from elevated valuations, geopolitical tensions, and trade disruptions call for a measured approach by investors.

Our central case is moderately positive for defined benefit (DB) pension schemes, but with a high level of uncertainty. Forward planning, liquidity and collateral management, and having dry powder to make the most of opportunities will be more important than ever.

Read more in our new ‘Expert Investor’ paper below:

Published:

23 / 01 / 2025

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Amy Mankelow​

Head of Communications and External Relations


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