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 Q4).
After the strong economic performance of 2024 and hope around President Trump’s pro-business policies, markets entered 2025 with optimism. However, Q1 was much more eventful than anyone anticipated, largely due to geopolitical developments across the globe.
In January, China launched DeepSeek, a cost-effective artificial intelligence (AI) model that disrupted the US-led AI industry. This sparked a new global competition, challenging American tech giants like OpenAI and NVIDIA.
In Europe, Germany’s February elections brought Friedrich Merz of the Christian Democratic Union to power. His government swiftly changed limits on Germany’s government borrowing, allowing defense spending above 1% of Gross Domestic Product (GDP), in response to the ongoing Russian-Ukraine war.
In March, the US stock market declined following President Trump’s first tariff announcement on Canada, Mexico and China and concerns around a wider trade war and the economic consequences. Shortly after the quarter ended, the announcement by the Trump administration of tariffs on ‘Liberation Day’, and a string of further updates from the US, and other countries in response, have continued to cause uncertainty around trade and the global economic outlook, leaving the global stock markets unsettled.
Keep reading to find out how our PensionBee plans have performed in Q1 2025. For more information on how global stock markets have impacted your pension in April, you can read our latest market performance blog.
Q1 2025 performance figures cover the calendar year period between 1 January and 31 March 2025.
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 40.5% ^. It’s our over 50s default plan. The plan seeks to reduce volatility compared to equities in times of market stress, whilst targeting a 4% above cash return over a minimum five year period.
| 3 month Performance as of 31 March 2025 (%) | 3 year annualised performance (%) | 5 year annualised performance (%) |
|---|---|---|
| 0.3% | 4.7 | 7.5 |
^Equity % at 31 March 2025, 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%. It’s our under 50s default plan. The plan invests in around 1,000 of the world’s largest and most recognised public companies. It aims to grow your pension savings in the years before retirement.
The plan launched in February 2025 and the first quarterly performance update will be available in July 2025.
In the meantime, you can find out more about the current plan performance on Morningstar.
Tailored Plan
PensionBee’s Tailored Plan is managed by BlackRock.
| Vintage | 3 month Performance as at 31 March 2025 (%) | 3 year annualised performance (%) | 5 year annualised performance (%) |
|---|---|---|---|
| 2061 - 2063 | -4.7 | 6.4 | 14.1 |
| 2049 - 2051 | -4.3 | 5.7 | 13.5 |
| 2043 - 2045 | -3.6 | 4.5 | 11.9 |
| 2037 - 2039 | -2.9 | 3.1 | 9.7 |
| 2031 - 2033 | -2.2 | 1.9 | 7.7 |
| 2025 - 2027 | -1.4 | 0.6 | 5.6 |
| LifePath Flexi | -1.0 | -0.0 | 3.8 |
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 the full calendar year performance will be available after Q4 2025. In the meantime, we’ll continue to report quarterly and year-to-date performance.
| 3 month Performance as at 31 March 2025 (%) | 3 year annualised performance (%) | 5 year annualised performance (%) |
|---|---|---|
| -5.6 | Not available | Not available |
You can find out more about the 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%. The plan invests in the 100 most publicly traded, Shariah-compliant global companies.
| 3 month Performance as at 31 March 2025 (%) | 3 year annualised performance (%) | 5 year annualised performance (%) |
|---|---|---|
| -9.8 | 9.5 | 16.5 |
PensionBee’s other plans
Tracker Plan
PensionBee’s Tracker Plan is managed by State Street Global Advisors with an equity proportion of 80%. The remaining 20% is allocated to fixed income.
| 3 month Performance as at 31 March 2025 (%) | 3 year annualised performance (%) | 5 year annualised performance (%) |
|---|---|---|
| -1.7 | 5.1 | 9.6 |
Pre-Annuity Plan
PensionBee’s Pre-Annuity Plan is managed by State Street Global Advisors with a fixed-income proportion of 100%. The plan invests in bonds to provide you with returns that broadly correspond with the cost of purchasing an annuity.
| 3 month Performance as at 31 March 2025 (%) | 3 year annualised performance (%) | 5 year annualised performance (%) |
|---|---|---|
| -1.5 | –7.9 | -4.8 |
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 aim to preserve your money.
| 3 month Performance as at 31 March 2025 (%) | 3 year annualised performance (%) | 5 year annualised performance (%) |
|---|---|---|
| 1.2 | 4.2 | 2.5 |
Impact Plan
PensionBee’s Impact Plan is managed by BlackRock with an equity proportion of 100%. We launched the plan in 2023, therefore we don’t have three and five year performance data. Additionally, the Impact Plan will be closed in Q2 2025, you can find more about it on this blog.
| 3 month Performance as at 31 March 2025 (%) | 3 year annualised performance (%) | 5 year annualised performance (%) |
|---|---|---|
| -5.1 | 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 depends on how these investments are performing. Learn more about these assets and how they performed during Q1 2025 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 Q1 2025?
European and UK markets had one of their strongest quarters in years. This was driven by Germany’s debt brake reforms and a €500 billion infrastructure investment plan. Sectors like industrials, energy, and utilities experienced gains, with large-cap companies driving overall market performance. This was boosted by the German government’s spending expansion announcement.
US markets were more volatile as geopolitical tensions and new tariffs caused sharp declines. The tech and consumer goods sectors were affected most due to concerns over supply chain disruptions.
The Japanese market posted negative returns, mainly due to uncertainty around US tariffs. This included a 25% tariff on imported cars that affected Japanese automakers.
The Chinese government’s fiscal support from late 2024 continued to drive economic growth into 2025. The launch of DeepSeek further boosted investor confidence, signaling China’s rising influence in the global tech sector.
| Market Index (100% equity) | Investment location | 3 month Performance as at 31 March 2025 (%) |
|---|---|---|
| FTSE 100 | UK | 3.9 |
| EuroStoxx 600 | Europe (ex-UK) | 4.6 |
| S&P 500 | US | -4.6 |
| Nikkei 225 | Japan | -9.4 |
| Hang Seng | China | 17.7 |
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’. This signifies the highest quality with minimal risk of default. The risk of default is the probability that a borrower fails to make payments. Due to their historical stability and predictability, bonds are a popular choice for shorter-term investors. In particular, retirees who plan to draw down in the near future. Bonds are also known as ‘fixed-income securities’ or debt.
How did UK bond markets perform in Q1 2025?
Over Q1, the bond market remained stable while the stock market was more volatile. Investors sought safer assets amid concerns about tariffs and a potential recession, particularly in the US.
In February, the Bank of England (the UK’s central bank) cut interest rates by 0.25% to 4.5%. This decision was made as there has been good progress in reducing the inflation rate. Despite this, the yield on long-dated UK government bonds rose slightly, driven by concerns over government spending and debt sustainability. UK corporate bonds also faced challenges from rising yields. However, they showed resilience, with tighter yield spreads indicating investor confidence in corporate earnings stability.
| Bond Index Fund | Investment location | 3 month Performance as at 31 March 2025 (%) | Bond proportion (%) |
|---|---|---|---|
| FTSE Actuaries UK-Linked Gilts All Stocks Index | UK | -1.40 | 100 |
| Schroder Long Dated Corporate Bond Fund | UK | -0.99 | 90 |
Source: Morningstar and FTSE Russell
Have a question? Get in touch!
Do you want to know more about your pension plan with PensionBee? Learn more about the top 10 holdings in your pension fund on our blog, which is regularly updated. 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.
