Danish pension company Velliv has reported a solid end to 2025 for its pension savers, pointing to attractive investment returns and improving economic conditions despite a year marked by geopolitical and market volatility.

According to Velliv, a typical customer with a medium-risk profile and 15 years remaining until retirement had achieved returns of between 8.9 per cent and 9.1 per cent by the end of November, placing performance towards the upper end of the market.

The provider noted that sentiment in financial markets had improved towards the end of the year following a turbulent start, helped in part by a recent interest rate cut by the US Federal Reserve and expectations of further easing extending into 2026.

Velliv also highlighted the positive impact of a new trade agreement between the US and China, which it said should support global trade, growth expectations and, ultimately, long-term retirement savings.

Meanwhile, it described US equity markets as having rebounded strongly since the spring, after uncertainty earlier in the year linked to political disruption and limited economic data.

With the resumption of government operations, clearer economic signals, reduced tariffs, and the easing of some export controls under the US-China agreement, Velliv said conditions had become more supportive for markets.

The company noted that November saw significant volatility as investors debated the likelihood of US rate cuts, uncertainty that has since eased following the Federal Reserve’s decision.

While concerns had emerged late in the year over stretched valuations in parts of the US market, particularly among AI-focused companies, Velliv suggested that market conditions had stabilised in mid-December, with risk appetite returning as expectations of looser monetary policy strengthened.

In Europe, Velliv pointed to a generally positive outlook, highlighting rising investment appetite in Germany as a potential boost for broader regional growth.

Looking ahead, the provider said it expects continued tailwinds for equity markets into 2026, supported by stable global economic growth, strong corporate earnings, falling US interest rates and improving investment sentiment across Europe.

However, it cautioned that high valuations, especially in the US technology sector, mean parts of the market could face corrections during 2026, even as it sees no immediate signs of a global recession.

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