The WTW Pension Index continued to decrease in December 2023. An increase in liabilities due to declining discount rates was partially offset by higher-than-expected investment returns. The index level decreased 1.6% since last month, bringing the December 31, 2023 index level to 107.5. Despite declining during December, the end-of-year index level has increased 6.1% since the beginning of the year.
Pension Finance Watch is designed to support our clients in the ongoing financial management of their U.S. retirement plans. The report tracks the value of the WTW Pension Index in a series that was initiated in 1990.
The index reflects the asset/liability performance of a hypothetical benchmark pension plan, and provides an indicator of capital market effects on pension plan financing. Individual plan results will vary based on such factors as portfolio composition, investment management strategy, liability characteristics and contribution policy.
|U.S. Pension Finance Watch – December 2023