Global Pension Funds Industry Market Size (2024 - 2029)

The pension fund market is anticipated to experience significant growth in its market size over the forecast period, driven by the adaptation of investment strategies to navigate complex economic environments. The impact of the COVID-19 pandemic has led to increased uncertainty, prompting pension funds to diversify their portfolios beyond traditional bonds and equities into alternatives such as hedge funds, private equity, and real estate. This diversification is part of a broader trend of pension reform, with privately managed funded pension programs expected to play a crucial role in retirement income delivery and as a source of long-term savings in financial markets.

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Market Size of Global Pension Funds Industry

Pension Funds Market Summary
Study Period 2020 - 2029
Market Size (2024) USD 76.30 Trillion
Market Size (2029) USD 119.03 Trillion
CAGR (2024 - 2029) 5.40 %
Fastest Growing Market Australia and New Zealand
Largest Market North America

Major Players

Pension Funds Market Major Players

*Disclaimer: Major Players sorted in no particular order

Pension Fund Market Analysis

The Global Pension Funds Industry in terms of assets under management value is expected to grow from USD 76.30 trillion in 2024 to USD 119.03 trillion by 2029, at a CAGR of 5.40% during the forecast period (2024-2029).

Pension fund schemes invest with a long-term investment perspective in line with the duration of their liabilities. Pension funds are adapting their investment strategies to succeed in the current complex and demanding environment.

The COVID-19 pandemic had a significant impact on investment markets, government revenues, and the outlook for public pension plans. Despite vaccine development, the effect of the pandemic remained highly uncertain, resulting in varying forecasts. At different times, different parts of the country experienced varying degrees of pandemic severity, and the economic impact of the pandemic on industries varied greatly.

Traditionally, pension funds are invested in bonds and equities with long-term investment horizons. Given the market volatility, they diversified their portfolios by allocating funds to alternatives like hedge funds, private equity, real estate, and others. Recent years have witnessed intense pension reform efforts in countries around the world, often involving increased use of funded pension programs managed by the private sector. These funded arrangements are expected to play an increasingly important role in delivering retirement income in many countries. Privately managed pension assets may play an increasing role in financial markets, notably as a source of long-term savings.

Pension Fund Industry Segmentation

Funds that pool the assets of pension plans are established for unrelated employers who are involved in the same trade or businesses. A complete background analysis of the market, which includes an assessment of emerging trends by segments and regional markets, significant changes in market dynamics, and a market overview, is covered in the report.

The pension funds industry is segmented by the type of pension plan (distributed contribution, distributed benefit, reserved fund, and hybrid) and by geographical location (North America, Europe, Asia-Pacific, and the Rest of the World). The report offers market size and forecasts in value (USD) for all the above segments.

By Plan Type
Distributed Contribution
Distributed Benefit
Reserved Fund
Hybrid
By Geography
North America
United States
Canada
Rest of North America
Europe
United Kingdom
Switzerland
Netherlands
Rest of Europe
Asia-Pacific
Australia
Japan
Rest of Asia-Pacific
Rest of the World
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Global Pension Funds Industry Size Summary

The global pension fund industry is poised for significant growth, driven by strategic adaptations in investment approaches to navigate a complex financial landscape. Traditionally focused on bonds and equities, pension funds are increasingly diversifying into alternative investments such as hedge funds, private equity, and real estate to mitigate market volatility and enhance returns. This shift is part of a broader trend towards funded pension programs managed by the private sector, which are expected to play a crucial role in retirement income provision across various countries. The COVID-19 pandemic has further accelerated these changes, impacting investment markets and prompting pension funds to reassess their strategies in response to economic uncertainties.

The landscape of pension funds is also evolving with the rise of defined contribution (DC) plans, which have outpaced defined benefit (DB) plans in asset growth, reflecting broader member coverage and higher contributions. This shift is accompanied by challenges in member engagement and governance, as technology enables more personalized participant interactions. The increasing allocation to private markets and other alternatives underscores a demand for risk diversification, as investors seek innovative solutions to manage the complexities of these assets. The report highlights key players in the market, such as the Social Security Trust Funds and California Public Employees' Retirement System, and discusses significant transactions, including APG and OMERS' acquisition of Groendus, illustrating the dynamic nature of the pension fund industry.

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Global Pension Funds Industry Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

      1. 1.1.1 Features and Coverage of Pension Plans Landscape

      2. 1.1.2 Assets Under Management by Pension Funds and Growth Rates, Over the Years

      3. 1.1.3 Impact of Pension Assets to the Economies Worldwide

      4. 1.1.4 Distribution of Pension Assets by Size Segment

      5. 1.1.5 Investment Patterns of Pension Funds

    2. 1.2 Role of Pension Funds in Achieving Financial Stability

      1. 1.2.1 Interconnectedness of Pension funds and Other Financial Intermediaries

      2. 1.2.2 Role of Pension Funds in Credit Intermediation and Lending Activities

    3. 1.3 Market Drivers

    4. 1.4 Market Restraints

    5. 1.5 Porter's Five Forces Analysis

      1. 1.5.1 Threat of New Entrants

      2. 1.5.2 Bargaining Power of Buyers/Consumers

      3. 1.5.3 Bargaining Power of Suppliers

      4. 1.5.4 Threat of Substitute Products

      5. 1.5.5 Intensity of Competitive Rivalry

    6. 1.6 Impact of Regulatory and Legislative Landscape on Pension Funds

      1. 1.6.1 Portfolio Limits on Pension Fund Investment in Selected Asset Categories

      2. 1.6.2 Portfolio Limits on Pension Fund Investment in Selected Foreign Asset Categories

      3. 1.6.3 Recent Changes to the Pension Fund Investment Regulations

    7. 1.7 Impact of COVID-19 on Fund Schemes

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Plan Type

      1. 2.1.1 Distributed Contribution

      2. 2.1.2 Distributed Benefit

      3. 2.1.3 Reserved Fund

      4. 2.1.4 Hybrid

    2. 2.2 By Geography

      1. 2.2.1 North America

        1. 2.2.1.1 United States

        2. 2.2.1.2 Canada

        3. 2.2.1.3 Rest of North America

      2. 2.2.2 Europe

        1. 2.2.2.1 United Kingdom

        2. 2.2.2.2 Switzerland

        3. 2.2.2.3 Netherlands

        4. 2.2.2.4 Rest of Europe

      3. 2.2.3 Asia-Pacific

        1. 2.2.3.1 Australia

        2. 2.2.3.2 Japan

        3. 2.2.3.3 Rest of Asia-Pacific

      4. 2.2.4 Rest of the World

Global Pension Funds Industry Market Size FAQs

The Global Pension Funds Market size is expected to reach USD 76.30 trillion in 2024 and grow at a CAGR of 5.40% to reach USD 119.03 trillion by 2029.

In 2024, the Global Pension Funds Market size is expected to reach USD 76.30 trillion.

Global Pension Funds Industry Report Snapshots

Pension Fund Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)