Strong equity markets, supported by two additional U.S. Federal Reserve rate cuts and continued momentum across sectors related to artificial intelligence, strengthened retirement income outcomes for capital accumulation plan members in the fourth quarter of 2025, according to a new report by Eckler Ltd.
The consultancy’s latest CAP income tracker found a typical male CAP member retiring at the end of December 2025 achieved a gross income replacement ratio of 68.9 per cent, up from 67.4 per cent in September. A typical female member achieved 67.1 per cent, up from 65.7 per cent.
Read: Report finds public equities rally boosting CAP outcomes in Q3 2025
While stronger markets improve projections for all members, the report noted the impact isn’t the same for everyone. “A strong return year when a member’s balance is at its highest, typically in the years leading up to retirement, can significantly shift the projected income replacement ratio. This is why two members with identical average returns over the same period can end up with very different retirement outcomes.”
For those nearing retirement, market surges can meaningfully improve their projected income, while younger members benefit gradually as contributions and long‑term compounding do the heavy lifting, said the report.
“As we look ahead to 2026, continuing to provide clear projections, practical tools and accessible education will help members understand these changes and stay confident in their ability to build a secure retirement.”
Read: Report finds public equities rebound boosting CAP outcomes in Q2 2025