Wall Street’s Outlook For The S&P 500 In 2025: Strong Growth Expected

by THEFUTURE.TEAM

December 4, 2024

Wall Street analysts are projecting continued strong returns for the S&P 500 in 2025, with most major banks forecasting a third consecutive year of impressive performance for the index, which tracks the 500 largest public U.S. companies. Investors are buoyed by the ongoing bull market, which is expected to continue into the next year.

Key Predictions

Bank of America: The bank expects the S&P 500 to reach 6,666 by the end of 2025, marking a 10% increase from its current level of 6,050. Analysts, led by Savita Subramanian, attribute this growth to favorable macroeconomic factors, including lower interest rates, increased labor productivity, and a corporate environment of rising profits. Subramanian adds that “the average stock is more attractive than the entire index.”
BMO Capital Markets: This Canadian institution predicts the S&P 500 will hit 6,700 points by year-end, implying an 11% growth. Chief strategist Brian Belsky notes that earnings growth is currently undervalued, and rate cuts by the Federal Reserve should support further gains.
Deutsche Bank: Setting the highest target on Wall Street, Deutsche Bank forecasts a 16% rise, predicting the S&P 500 will end 2025 at 7,000 points. Strategists, including Binky Chadha, suggest that increased capital spending outside of big tech, a global economic recovery, and rising M&A activity will contribute to this strong performance.
Evercore ISI: Focusing on technology, Evercore predicts 6,600 points by mid-2025. Strategists led by Julian Emanuel believe the bull market is “still in its infancy,” signaling the potential for ongoing growth.
Goldman Sachs: With a target of 6,500 points (+9%), Goldman Sachs anticipates continued U.S. economic expansion and an 11% increase in earnings per share, driving market growth.
Morgan Stanley: Morgan Stanley also sets a target of 6,500 points but provides a broader range of potential outcomes, from a bullish scenario of 7,400 points (+26%) to a bearish scenario of 4,600 points (-28%).
UBS: Forecasting 6,600 points by the end of 2025, UBS expects a 10% gain, bolstered by the return of Donald Trump to the presidency, which has accelerated positive market sentiment.
Yardeni Research: This independent firm is even more optimistic, predicting the S&P 500 will reach 7,000 points by the end of 2025, reflecting a 19% increase. Yardeni’s forecast is rooted in the potential economic benefits of a “Trump 2.0” administration.

Big Number

Yardeni Research also predicts that the S&P 500 could climb as high as 10,000 by 2029, anticipating a strong annualized return of 16%.

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Key Story

The S&P 500 is on track for a 27% year-to-date gain, surpassing its 23% rise in 2023. This would mark the first time the index has gained at least 20% in two consecutive years since the internet boom between 1995 and 1998. With a 58% rise since the end of 2022, the S&P is poised for its best two-year performance since the late 1990s.

Much of the recent growth has been driven by major tech companies like Amazon, Meta, Nvidia, and Tesla, which have each seen over 150% growth since the end of 2022, defying the pressures of a high-interest rate environment.

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NERDs Replace FIRE As Young Workers Lose Confidence In Retirement

by THEFUTURE.TEAM

September 4, 2026

The FIRE movement promised younger workers a path to financial independence and early retirement. Now, a different group is emerging in the UK: NERDs, or the “Never Ever Retiring Demographic.”

Growing pessimism among Gen Z and millennials is driving the shift, with many questioning whether retirement will ever be financially achievable. Some are responding by reducing or abandoning pension contributions altogether.

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Young Workers Are Losing Confidence In Retirement

Research from People’s Pension, a major UK workplace pension provider, found that 47% of Gen Z respondents aged 18 to 27 do not engage with their pension. Another 12%, equivalent to about 2.2 million young people, have stopped saving for retirement because they expect to work indefinitely.

Wider financial pressures are contributing to that outlook. High living costs have pushed milestones such as homeownership, marriage, having children and retirement further away for many younger workers, while inflation, layoffs and stagnant wages have added to uncertainty.

Pension Providers Face A Communication Gap

Financial pressure is only part of the problem. Young workers also say pension providers are failing to explain long-term saving in ways that feel relevant to them.

About 36% of respondents said providers do not explain retirement saving effectively. Among them, 27% said companies appear more focused on selling products than educating customers, while 16% cited complicated language and jargon.

A clear generational difference emerges in the responses. Some 29% of Gen Z respondents said providers fail to explain why pension saving matters, compared with 13% of Gen Xers and Baby Boomers. Similarly, 17% of Gen Z said providers do not use channels they engage with, versus 4% among older generations.

Clearer information could influence behavior. About 70% of Gen Z respondents said they would have started saving earlier if they had known that beginning in their 20s could potentially double their retirement pot compared with starting in their 30s. Another 63% said learning about tax relief and employer contributions motivated them to save.

“In a world where financial doom dominates pension conversations, young savers are tuning out,” said Kirsty Ross, proposition director at People’s Pension. “Our research shows they are not disengaged because they don’t care, they are disengaged because the messages aren’t working.”

Young Savers Want Simpler Tools

Progress bars and goal trackers were among the most popular tools respondents said could make pensions more relevant, cited by 31%. Another 26% wanted reassurance that they could start with small amounts, while 23% wanted examples of what people their age are doing.

Clear, bite-sized steps were cited by 22%, while 19% said light-hearted and relatable stories could make pensions more accessible.

People’s Pension has responded with Pension Drop, a campaign using social media influencers, live events and lifestyle personalities to encourage conversations about retirement saving.

“Looking back, I really wish I’d started earlier,” said Iain Stirling, comedian, TV presenter and Pension Drop ambassador. He said contributions made in someone’s 20s or 30s can make a significant difference later, while employer contributions and tax relief can increase the value of smaller payments.

Small Changes Can Improve Long-Term Saving

Stirling urged younger workers to check their pension provider, establish whether they have multiple pension pots and make sure they are contributing enough to receive the full employer match.

He also recommended increasing contributions after a pay rise or bonus, allowing workers to raise long-term savings without making a large immediate change to their spending.

For younger workers facing high living costs and uncertain career prospects, pension saving remains a difficult sell. Clearer information about employer contributions, tax relief and the long-term effect of starting early could help make retirement planning more tangible.

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