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Article | Global Pension Finance Watch

Global Pension Finance Watch – Fourth Quarter 2023

By Nathan Pavlik and David Finn | January 24, 2024

More dovish Central Bank policies across key markets in Q4 2023 led to a more volatile quarter than Q3 marked by discount rate decreases across all countries.

Asset performance was largely positive, and inflationary pressures remain but show signs of subsiding. Overall, the combined effects drove negative third quarter pension index results for all countries, with the exception of Japan. The pension index decreased in all regions over the full year, with decreases in the single digits, except for in Japan and the United States, where strong equity performance drove single digit increases.

About this report

Global Pension Finance Watch, published quarterly, reviews how capital market performance affects defined benefit pension plan financing in major retirement markets worldwide, with a focus on linked asset/liability results. We cover defined benefit pension plans in Brazil, Canada, the Eurozone, Japan, Switzerland, the U.K. and the U.S. Specific plan results will vary, often substantially, based on liability characteristics, contribution policy, portfolio composition and management strategy among other factors. The passage of time since quarter end, may also have a significant impact on pension plan financing.

The impact of capital markets on these pension plans is twofold:

  • Investment performance on fund assets
  • Changes in economic assumptions on plan liabilities (as measured under international accounting standards)

If you have questions or comments about this report, please contact our WTW experts.

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Global Pension Finance Watch – Fourth Quarter 2023 PDF .4 MB

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