Take Two with TIAA: 2025 Retirement industry trends
What a difference a year makes. Last year saw declining inflation, robust economic growth and a surging US stock market. 2025 could be very different. Let's take a closer look at three key dynamics shaping the retirement industry in 2025.
Hi I'm Neel Mukherjee and it's time to take two with TIAA.
First, the tug of war between the bond market and Washington DC will be a prime focus for savers and retirees. While the Federal Reserve is considering further interest rate cuts. With inflation at 2.8%. Proposed Republican policies, including changes to Social Security benefits, tax structures and trade and immigration policies could create inflationary pressures.
Second, market volatility is likely to increase, highlighting the importance of robust plan design and investment menus. After the S&P 500 s remarkable performance in 2024 with over 50 record highs, current valuations suggest a choppier environment ahead.
Third, global market dynamics are evolving. While we maintain a preference for U.S. stocks, the changing international landscape, including demographic shifts in Europe and China and evolving trade relationships, presents both challenges and opportunities for the institutional retirement plans.
These factors underscore why in 2025, employers may wish to promote financial advice benefits to help keep their employees on track amid increased volatility. Want to dive deeper into more trends shaping the retirement industry in 2025? Download our comprehensive Retirement Industry Trends report at Tiaa.org.
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This material is for informational or educational purposes only and is not fiduciary investment advice, or a securities, investment strategy or insurance product recommendation. This material does not consider an individual’s own objectives or circumstances which should be the basis of any investment decision.
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