It’s increase in Q2 was thanks to equities delivering strong domestic and international returns.
Global pension index results were mixed in the second quarter of 2025 (Q2 2025), according to WTW’s Global Pension Finance Watch.
Japan saw “solid improvement” with a 4.7% gain. The US posted the strongest quarterly growth at 6.1%, supported by a 7.0% rise in its benchmark portfolio and a 0.7% increase in liabilities. Canada followed after Japan with 2.7%.
The Eurozone saw a 0.4% increase as asset gains of 2.2% offset a 1.8% rise in liabilities. Switzerland and the UK recorded declines of 1.1% and 1.4%, respectively.
Brazil posted the largest drop at 2.2%, driven by an 8.3% increase in liabilities from lower discount rates despite a 5.9% gain in assets.
Over the past 12 months, the US pension index rose 7.2%, Japan 5.2%, and Canada 4.9%.
The Eurozone gained 5.6%, Brazil 5.9%, and the UK 2.5%. Switzerland was the only market to record a 12-month decline, down 0.5%.
Breakdown
The US posted the strongest quarterly gain, driven by a 7.0% increase in its benchmark portfolio, supported by strong domestic and international equity gains of 10.5% and 11.7%, respectively, and modest domestic fixed income growth of 1.2%.
Liabilities increased 0.7% as discount rates edged up six basis points to 5.71%. Over the past 12 months, the US index gained 7.2%.
Japan’s increase in Q2 2025 was thanks to equities delivering strong domestic and international returns of 7.6% and 7.8%.
The benchmark discount rate rose by 23 basis points to 3.00%, resulting in a 2.6% fall in liabilities. The 12-month change was a 5.2% gain.
Canada’s pension index was supported by domestic and international equity gains of 8.5% and 5.5%, and a benchmark discount rate increase to 4.88%, which lowered liabilities by 1.3%.
The Eurozone’s increase was because of its 2.2% portfolio gain, offset by a 1.8% liability rise from a lower discount rate.
Switzerland’s index dip was because of flat asset performance combined with a 1.0% increase in liabilities. The UK’s drop despite a 1.9% asset gain, due to liabilities climbing 3.4% on lower discount rates.
Brazil saw the steepest fall, with assets up 5.9% but liabilities surging 8.3% after a 45-basis-point fall in its discount rate.
Over the past year, most markets posted gains, led by Brazil at 5.9% and the Eurozone at 5.6%. Switzerland was the only market to decline year-on-year, down 0.5%.
AloJapan.com