This is part of our quarterly plan performance series. Catch up on last quarter’s summary here: How PensionBee’s plans are performing in 2024 (as at Q3).
The last quarter of 2024 saw global markets and economies shift due to political changes, mixed economic data, and differing regional trends.
In November, Donald Trump’s re-election as US President led to a surge in US equities. Investors predicted pro-business policies, including tax reductions and deregulation.
Conversely, European markets faced some uncertainty due to political instability and concerns over potential US tariffs on European imports.
The US Federal Reserve maintained elevated interest rates, ending the year at 4.48% and in contrast, the European Central Bank implemented rate cuts to stimulate growth amid recession fears. The UK’s economy grew by 0.1% in Q4 2024, avoiding recession.
As we transition into 2025, investors should be aware of the ongoing volatility associated with rapidly changing geopolitical developments, alongside central bank policies and their potential impacts on global markets.
Keep reading to find out how our PensionBee plans have performed over 2024 and for more information on global stock markets.
2024 performance figures cover the calendar year period between 1 January and 31 December 2024, apart from the Climate Plan which covers Q4 only, from 1 October to 31 December 2024.
This blog is only meant to provide information. The data comes from our money managers or plan factsheets. Performance figures are before fees. Past performance isn’t an indicator of what will happen in the future. As with all investments, capital is at risk.
PensionBee’s default plans
4Plus Plan
PensionBee’s 4Plus Plan is managed by State Street Global Advisors with an equity proportion of 71% ^.
| Performance as at 31 December 2024 | 3 year annualised performance | 5 year annualised performance |
|---|---|---|
| 10.24% | 3.77% | 5.37% |
^Equity % at 31 December 2024, asset allocation changes on a weekly basis due to the plan’s actively managed component.
Global Leaders Plan
PensionBee’s Global Leaders Plan is managed by BlackRock with an equity proportion of 100%. The plan launched in February 2025 and therefore there’s no historic performance data yet.
You can find out more about current plan performance on Morningstar.
Tailored Plan
PensionBee’s Tailored Plan is managed by BlackRock.
| Vintage | Performance as at 31 December 2024 | 3 year annualised performance | 5 year annualised performance |
|---|---|---|---|
| 2061 - 2063 | 18.63% | 6.67% | 9.78% |
| 2049 - 2051 | 17.56% | 5.84% | 9.18% |
| 2043 - 2045 | 15.24% | 4.42% | 7.95% |
| 2037 - 2039 | 13.10% | 2.76% | 6.44% |
| 2031 - 2033 | 10.88% | 1.28% | 4.99% |
| 2025 - 2027 | 8.32% | -0.28% | 3.51% |
| LifePath Flexi | 7.17% | -1.05% | 2.46% |
PensionBee’s sustainable plans
Climate Plan
PensionBee’s Climate Plan is managed by State Street Global Advisors with an equity proportion of 100%. The new Paris-aligned strategy was launched in September 2024 and therefore we only have Q4 2024 performance data.
| Q4 2024 performance | 3 year annualised performance | 5 year annualised performance |
|---|---|---|
| 5.04% | Not available | Not available |
You can find out more about current plan performance on Morningstar.
Shariah Plan
PensionBee’s Shariah Plan is managed by HSBC and traded by State Street Global Advisors with an equity proportion of 100%.
| Performance as at 31 December 2024 | 3 year annualised performance | 5 year annualised performance |
|---|---|---|
| 29.40% | 11.48% | 16.82% |
PensionBee’s other plans
Tracker Plan
PensionBee’s Tracker Plan is managed by State Street Global Advisors with an equity proportion of 80%.
| Performance as at 31 December 2024 | 3 year annualised performance | 5 year annualised performance |
|---|---|---|
| 14.48% | 3.53% | 6.07% |
Pre-Annuity Plan
PensionBee’s Pre-Annuity Plan is managed by State Street Global Advisors with a fixed-income proportion of 100%.
| Performance as at 31 December 2024 | 3 year annualised performance | 5 year annualised performance |
|---|---|---|
| -4.88% | -11.09% | -5.38% |
Preserve Plan
PensionBee’s Preserve Plan is a money market fund managed by State Street Global Advisors. The plan makes short term investments into high creditworthy companies with the objective of capital preservation.
| Performance as at 31 December 2024 | 3 year annualised performance | 5 year annualised performance |
|---|---|---|
| 5.33% | 3.80% | 2.34% |
Impact Plan
PensionBee’s Impact Plan is managed by BlackRock with an equity proportion of 100%. We’re closing the Impact Plan in Q2 2025.
| Performance as at 31 December 2024 | 3 year annualised performance | 5 year annualised performance |
|---|---|---|
| 8.94% | Not available | Not available |
Learn more about how your pension is invested
Your pension is typically invested in a range of assets like company shares (also known as stocks and equities), bonds, property and cash. The value of your pension therefore depends on how these investments are performing. Learn more about these assets and how they performed over 2024 below.
What are company shares?
Company shares are also known as ‘stocks’ or ‘equities’, and they’re commonly traded on stock markets. Company shares are units of ownership in a company. When a company wants to raise money, it can issue shares to investors who pay a certain amount of money for each share. By buying shares, investors become part-owners of the company and can enjoy its profits or growth. But, they also take on the risk of a decline in share prices if the company performs poorly or even goes bankrupt.
How did global stock markets perform in 2024?
In the Eurozone, shares continued to show resilience, particularly in the technology and consumer goods sectors. Meanwhile, in the UK, company shares experienced a boost, although there was some concern around inflation and potential interest rate hikes.
In the US, company shares saw a steady increase. However, the performance varied across sectors, with investors gravitating towards healthcare stocks rather than the volatility of the energy sector.
Japan’s stock market faced fluctuations, initially reacting negatively to global economic uncertainties, but later rebounded as sentiment improved. In Asia, markets outside Japan enjoyed strong growth, particularly in India, driven by strong corporate earnings and government reforms.
| Index | Investment location | Performance over 2024 as at 31 December (%) | Equity proportion (%) |
|---|---|---|---|
| FTSE 250 Index | UK | 8.1% | 100% |
| EuroStoxx 50 Index | Europe (excluding UK) | 8.2% | 100% |
| S&P 500 Index | North America | 23.3% | 100% |
| Nikkei 225 Index | Japan | 19.2% | 100% |
| Hang Seng Index | Asia Pacific (excluding Japan) | 17.7% | 100% |
Source: Google Market Data
What are bonds?
Bonds are a type of debt investment where you lend money to an organisation, like a government (sovereign bonds) or company (corporate bonds). In return, they agree to pay you back with interest over a fixed and pre-agreed period of time, this is known as the coupon. A bond yield is the anticipated rate of annual return that an investor gets from a bond for its duration (maturity of the loan).
Bonds have different ratings, with AAA grade also known as “investment grade”, signifying the highest quality with minimal risk of default. Due to their historical stability and predictability, bonds are a popular choice for shorter-term investors such as retirees who plan to draw down in the near future. Bonds are also known as ‘fixed-income securities’ or debt.
How did global bond markets perform in 2024?
2024 was predicted to be the year both inflation and interest rates would come down. Inflation steadily declined in the UK throughout 2024 while interest rates were cut from 5.25% to 4.75%. This reduction in interest rates was slower than predicted and resulted in disappointing returns. While government bond yields increased, corporate bond yields have generally fallen over 2024.
Interest rates can impact pensions, especially for savers nearing retirement. When interest rates rise, newly issued bonds provide better returns, which can help pension funds grow. On the other side, low interest rates can reduce returns.
| Fund | Source | Performance over 2024 as at 31 December (%) | Fixed-income proportion (%) |
|---|---|---|---|
| Schroder Long Dated Corporate Bond Fund | UK | -3.42% | 86% |
Source: Morningstar
Have a question? Get in touch!
Do you want to know more about your pension plan with PensionBee? If you want to learn more about the top 10 holdings in your pension fund you can check out our blog, which is regularly updated with the latest holdings. You can also look at our Plans page to learn how your money is invested in different assets and locations, or log in to your BeeHive to see your specific plan. You can always send comments and questions to our team via engagement@pensionbee.com.
Risk warning
As always with investments, your capital is at risk. The value of your investment can go down as well as up, and you may get back less than you invest. This information should not be regarded as financial advice.
