Pension Review “First Take”

US corporate defined benefit pensions entered 2026 from a position of unusual strength, with aggregate funded status reaching its highest year‑end level since before the Global Financial Crisis. Strong equity and fixed income returns in 2025, combined with broader adoption of liability‑driven investing, have left assets better aligned with liabilities and reduced the relative financial weight of plans on corporate balance sheets.

This improved footing is prompting sponsors to revisit endgame options, from de‑risking and potential plan termination strategies to selective re‑risking where surpluses may be deployed more actively. At the same time, elevated geopolitical tensions and market volatility in early 2026 underscore how quickly conditions can change without disciplined risk management.

Advisors and investors should view this as both a window for strategic repositioning and a reminder that robust funding levels do not eliminate the need for ongoing pension oversight.