Pension Administration Software Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

The Pension Administration Software Market is expected to grow at a CAGR of 2.1% for the next five years. The use of pension administration software cuts down human work, reduces manpower dependency, and speeds up the process of maintenance.

Key Highlights

• An administrator can distribute money by the specifications set out by either an employee or an employer on the back of a sophisticated asset module of the pension administration software. As a result, less paper needs to be processed, and there is less chance that the user will make a mistake.
• The pension administration software works under several platforms, such as Mac, Windows, and others, currently highlighting real-time fund management analytics. Information provided by a program is more precise and current. A software solution also ensures a more streamlined, simple, and error-free experience should any essential audits be required.
• The retirement administration software market is witnessing a seismic transition with the growing digital needs of clients, low-profit margins for recordkeepers, and a lack of efficient technology for banks. Organizations in the financial services industry need help to keep up with the expensive maintenance of legacy systems. These are layers of inadequate technology systems that increase the complexity of recordkeeping.
• The federal, state, and municipal governments offer the chance to obtain a public pension. Presently, there are various pension software platforms that large government enterprises are using as a centralized platform for the benefit calculation of a huge number of employees.
• Despite the adversities of the COVID 19 pandemic, it has necessitated the growth of digital platforms worldwide. Adopting pension administration software across all enterprise scales allowed them to combat crises by managing their pension funds online without human intervention. Also, as per research during the previous year, most people who aren't retired globally intended to save more for their retirement after the COVID pandemic breakdown than they had originally anticipated.

Pension Administration Software Market Trends

Higher Usage of Cloud Boosting the Market

• The use of cloud hosting (often known as 'the Cloud') in pension administration benefits all parties involved, including members, scheme administrators, trustees, and corporate executives. As a fully managed hosting service guarantees service level agreements and ultimately eliminate the hassle and costs of operating and servicing an on-premises system, cloud technology provides a full risk transfer.
• The Pension Administration Software Market dynamics are shifting towards the cloud. The entrance barrier for software installations might be significantly lowered on the back of the cloud, both from the vendor and user perspectives. Multiple customers may now complete tasks that formerly required on-site specialists. The server installs and administers individual Windows PCs from a single cloud - with the program accessed using conventional browser interfaces.
• Due to its significant commercial benefits, cloud adoption has accelerated during the past five years. This virtual infrastructure allows users to operate remotely according to need. Also, the strong cloud deployment guarantees almost 100% uptime and secure data privacy. Constant technological advancements lead to cost reductions in the double-digit percentage range.
• Embracing new technologies is in the best interest of pension plans, as is making sure the plans are operated as effectively and efficiently as possible for trustees and members. For instance, switching to a cloud-based administration service aligns with member self-service features' availability. By allowing members to examine their scheme benefits online and allowing administrators to upload documents securely into the member's personal folders, trustees may minimize the postal expenses associated with mailing benefit statements to participants.
• Notably, there is a rise of various cloud-based pension administrative software companies globally, like Oracle, SAP, and Vitech Systems across the world, constantly advancing their technology platforms and helping various large enterprises seamlessly manage their huge set of data.

North America Has a Market Dominance

• Due to an aging population, the North American pension administration software industry is one of the biggest industries in global marketplaces. The U.S. Social Security program and the Canada Pension Plan (CPP) are publicly funded, mandated old-age pension programs. Both countries offer benefits for retirement, disability, and survivorship.
• Canada and the United States of America are among the top nations in the world's region, with the most advanced technology in North America, both financially and technologically. These nations have the greatest acceptance rates for all I.T. and software-related advancements due to their constant openness to new creative technology investment.
• Notably, the foundation of the private sector retirement system in the United States is defined contribution (D.C.) retirement plans. There are currently more than USD 9.6 trillion in assets in D.C. plan accounts that cover more than 100 million Americans. Since year-end 2007, the first year following the Pension Protection Act (PPA) of 2006's implementation, automatic enrolment and software-enabled systems usage has increased by more than thrice.
• In the United States, almost 77% of parents who participated in a study in 2021 had a 401(k) plan for retirement. Regular savings accounts, used by 67% of Americans, were the second most common form of retirement savings account. Less than one-third of the parents who participated in the poll used the remaining accounts.

Pension Administration Software Market Competitor Analysis

The Pension Administration Software Market is fragmented as it currently consists of many players. Several key players in the market are in constant efforts to bring advancements. A few prominent companies are entering into collaborations and expanding their global footprint in developing regions to consolidate their positions in the market. The major player in this market includes Heywood Limited, Milliman, Inc., the Civica Group, SAP SE, and Oracle Corporation.

• In December 2022, Milliman, a market-leading consulting firm worldwide, unveiled the news that it had made available the most recent version of its Arius® insurtech software solutions, a series of cutting-edge reserve analysis tools for big self-insureds and property and casualty insurers.
• In July 2022, Smart, the premier supplier of retirement technology worldwide, designed a revolutionary technology platform, Keystone, to transform the USD 62 trillion retirement savings industry. Keystone by Smart, which can serve hundreds of millions of people, will now be made available to corporate and public-sector clients throughout the world's pensions business.

Additional benefits of purchasing the report:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

This product will be delivered within 2 business days.