The pension funds market size is expected to see strong growth in the next few years. It will grow to $97.59 trillion in 2028 at a compound annual growth rate (CAGR) of 8.9%. Anticipated growth in the forecast period is expected due to a heightened focus on sustainability and ESG (Environmental, Social, and Governance) investing, increased adoption of digital transformation and fintech, ongoing economic uncertainties, evolving regulatory frameworks, shifting trends in interest rates, rising longevity risks, and consolidation among pension funds. Major trends in this period include the rise of defined contribution (DC) plans, integration of digital tools in retirement planning, growing interest in private equity and alternative investments, adoption of liability-driven investment (LDI) strategies, and the impact of aging populations on fund management.
The increasing demographic demand from aging populations is expected to drive growth in the pension fund market in the coming years. This demographic shift is fueled by advancements in healthcare and medicine, which have extended life expectancy, coupled with declining birth rates that reduce the proportion of younger generations available to support elderly populations. As life expectancies rise, pension funds become increasingly crucial for providing financial security and sustainable income during retirement. For example, a July 2022 report from the United Nations forecasts that the global population aged 65 and above will grow from 10% in 2022 to 16% by 2050, indicating a substantial increase in this demographic worldwide by mid-century. Thus, the rising demographic demand from aging populations will be a key driver of growth in the pension fund market.
Leading companies in the pension funds market are enhancing pension portability solutions through advanced pension tracing services aimed at improving member experience and facilitating the transfer of pension assets across different plans. Pension tracing services offer comprehensive assistance in locating, verifying, and consolidating various pension plans accumulated over individuals' careers. For instance, in April 2024, Aviva plc, a UK-based insurance company, launched the UK’s first ‘find and combine’ pension tracing, checking, and consolidation service. This innovative service helps individuals locate their diverse pension schemes, verify their details, and consolidate them into a single, easily manageable plan. Leveraging advanced tools and technology, this service enables users to optimize their retirement benefits and maintain better control over their financial futures.
In December 2023, Edelman Financial Engines, a U.S.-based financial planning and investment management provider, acquired New England Pension Plan Systems to strengthen its position in the retirement plan market, particularly for small employers in the Northeast. New England Pension Plan Systems specializes in retirement plan services and investment management for small businesses in the United States.
Major companies operating in the pension funds market are Allianz SE, JPMorgan Chase & Co., Bank of America Corporation, Prudential Financial Inc, The Goldman Sachs Group Inc., UBS Group AG, Deutsche Bank AG, FMR LLC (Fidelity Investments), UTI Retirement Solutions Limited, Aegon NV, The Bank of New York Mellon Corporation, BlackRock Inc, State Street Corporation, HDFC Life Insurance Company Limited, The Vanguard Group Inc, Northern Trust Corporation, California Public Employees’ Retirement System (CalPERS), Mercer LLC, Reliance Nippon Life Insurance Company Limited, National Railroad Retirement Investment Trust, National Electrical Benefit Fund, ICICI Prudential Pension Funds Management Company Limited, SBI Pension Funds Private Limited, Tata AIA Life Insurance Company Limited, Legal & General Group PLC, Pacific Investment Management Company LLC (PIMCO)
North America was the largest region in the pension funds market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the pension funds market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the pension funds market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
A pension fund represents a collection of assets allocated by an employer, employees, or both, aimed at providing retirement income. These funds are strategically invested in various financial instruments to ensure growth over time, thereby guaranteeing regular payments or a lump sum to retirees. They serve to offer financial stability and security during retirement by providing a dependable income source.
Pension funds are categorized into three main types, distributed contributions, distributed benefits, and reserved funds. A distributed contribution (DC) plan involves employees contributing a fixed percentage of their salaries, often supplemented by employer contributions. These plans cater to diverse income brackets, serving governments, corporations, and individuals alike.
The pension funds market research report is one of a series of new reports that provides pension funds market statistics, including pension funds industry global market size, regional shares, competitors with an pension funds market share, detailed pension funds market segments, market trends and opportunities, and any further data you may need to thrive in the pension funds industry. This pension funds market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The pension fund market includes revenues earned by entities through contributions, investment management, portfolio advisory, actuarial consulting, fund administration, and retirement planning. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
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Table of Contents
Executive Summary
Pension Funds Global Market Report 2024 provides strategists, marketers and senior management with the critical information they need to assess the market.This report focuses on pension funds market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
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Description
Where is the largest and fastest growing market for pension funds? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The pension funds market global report answers all these questions and many more.The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.
- The market characteristics section of the report defines and explains the market.
- The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
- The forecasts are made after considering the major factors currently impacting the market. These include:
- The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.
- The impact of higher inflation in many countries and the resulting spike in interest rates.
- The continued but declining impact of COVID-19 on supply chains and consumption patterns.
- Market segmentations break down the market into sub markets.
- The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth. It covers the growth trajectory of COVID-19 for all regions, key developed countries and major emerging markets.
- The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
- The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.
Scope
Markets Covered:
1) By Type: Distributed Contribution; Distributed Benefit; Reserved Fund2) By Application: Low Income Group; High Income Group
3) By End User: Government; Corporate; Individuals
Key Companies Mentioned: Allianz SE; JPMorgan Chase & Co.; Bank of America Corporation; Prudential Financial Inc; The Goldman Sachs Group Inc.
Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain
Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
Time Series: Five years historic and ten years forecast.
Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita.
Data Segmentation: Country and regional historic and forecast data, market share of competitors, market segments.
Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
Delivery Format: PDF, Word and Excel Data Dashboard.
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Allianz SE
- JPMorgan Chase & Co.
- Bank of America Corporation
- Prudential Financial Inc
- The Goldman Sachs Group Inc.
- UBS Group AG
- Deutsche Bank AG
- FMR LLC (Fidelity Investments)
- UTI Retirement Solutions Limited
- Aegon NV
- The Bank of New York Mellon Corporation
- BlackRock Inc
- State Street Corporation
- HDFC Life Insurance Company Limited
- The Vanguard Group Inc
- Northern Trust Corporation
- California Public Employees’ Retirement System (CalPERS)
- Mercer LLC
- Reliance Nippon Life Insurance Company Limited
- National Railroad Retirement Investment Trust
- National Electrical Benefit Fund
- ICICI Prudential Pension Funds Management Company Limited
- SBI Pension Funds Private Limited
- Tata AIA Life Insurance Company Limited
- Legal & General Group PLC
- Pacific Investment Management Company LLC (PIMCO)
Methodology
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Table Information
Report Attribute | Details |
---|---|
No. of Pages | 175 |
Published | August 2024 |
Forecast Period | 2024 - 2028 |
Estimated Market Value ( USD | $ 69418.63 Billion |
Forecasted Market Value ( USD | $ 97599.1 Billion |
Compound Annual Growth Rate | 8.9% |
Regions Covered | Global |