Pension Fund Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The report covers Global Pension Funds Market Size and it 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 market size and forecasts are provided in terms of value (USD) for all the above segments.

Pension Fund Market Size

Pension Funds Market Summary
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Study Period 2019-2028
Market Size (2023) USD 72.39 Trillion
Market Size (2028) USD 112.93 Trillion
CAGR (2023 - 2028) 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


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Pension Fund Market Analysis

The Global Pension Funds Industry in terms of assets under management value is expected to grow from USD 72.39 trillion in 2023 to USD 112.93 trillion by 2028, at a CAGR of 5.40% during the forecast period (2023-2028).

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 Market Trends

Distributed Contribution Plans are Settling as a Dominant Global Model

In 2021, the total defined contribution (DC) assets across the aggregate of the six largest pension markets in the world exceeded defined benefit (DB) assets for the first time. Over the decade to 2021, DC assets continued to grow at a faster rate than DB (8.4% pa vs. 4.8% pa), reflecting increased member coverage and higher contributions in some markets.

Along with a rise in the distributed contribution assets, there are challenges like member engagement for employers. Targeted engagement provides better insights but faces challenges in execution. Advances in technology are opening up new possibilities for customization, changing the nature of member interactions, and re-setting member expectations. The future of DC is anticipated to be hyper-customized, with an increased focus on individual participants, but employers may need to improve governance to embrace this.

Pension Funds Market - Distributed Contribution and Distributed Benefit Assets Share in Pension Funds, 2019-2022

Key Trends in Asset Allocation of Pension Funds

The asset allocation to real estate, private equity, and infrastructure in the 20-year period grew from 6% to 23%. Alternatives have been attractive for return reasons, offsetting their governance difficulties.

A rise in allocations to private markets and other alternatives at the expense of equities and bonds has been observed, reflecting the demand for risk diversification. Investors continue looking for innovative ways to evolve their mandates to manage the agency, measurement, integration, and complexity challenges of private markets.

Pension Funds Market - Asset Allocation Trends of Pension Funds, 2019-2022

Pension Fund Industry Overview

The report includes an overview of the largest pension funds and a few corporate funds operating pension schemes worldwide. Some of the major players, such as Social Security Trust Funds, AT&T Corporate Pension Fund, and California Public Employees' Retirement System, are dominating the market studied in terms of asset size and are discussed in detail in the report.

Pension Fund Market Leaders

  1. Social Security Trust Funds

  2. AT&T Corporate Pension Fund

  3. California Public Employees’ Retirement System

  4. 1199SEIU Pension And Retirement Funds

  5. National RailRoad Retirement Investment Trust

*Disclaimer: Major Players sorted in no particular order

Pension Funds Market Concentration

Pension Fund Market News

In June 2022, APG and OMERS announced the acquisition of Groendus. APG's investment was made on behalf of its pension fund client, ABP. APG is the largest pension provider in the Netherlands, and OMERS Infrastructure is investing on behalf of OMERS, one of the largest pension plans in Canada.

In March 2022, EQT expanded in Asia with a USD 7.2 billion PE acquisition, CPPIB's most active pension LP. The transaction brings USD 18.8 billion of assets under management to EQT, adding to the firm's USD 77.7 billion in current AUM. EQT, which is publicly listed, will pay USD 7.2 billion, consisting of new shares and EUR 1.5 billion in cash.

Pension Fund Market Report - Table of Contents


    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Market




    1. 4.1 Market Overview

      1. 4.1.1 Features and Coverage of Pension Plans Landscape

      2. 4.1.2 Assets Under Management by Pension Funds and Growth Rates, Over the Years

      3. 4.1.3 Impact of Pension Assets to the Economies Worldwide

      4. 4.1.4 Distribution of Pension Assets by Size Segment

      5. 4.1.5 Investment Patterns of Pension Funds

    2. 4.2 Role of Pension Funds in Achieving Financial Stability

      1. 4.2.1 Interconnectedness of Pension funds and Other Financial Intermediaries

      2. 4.2.2 Role of Pension Funds in Credit Intermediation and Lending Activities

    3. 4.3 Market Drivers

    4. 4.4 Market Restraints

    5. 4.5 Porter's Five Forces Analysis

      1. 4.5.1 Threat of New Entrants

      2. 4.5.2 Bargaining Power of Buyers/Consumers

      3. 4.5.3 Bargaining Power of Suppliers

      4. 4.5.4 Threat of Substitute Products

      5. 4.5.5 Intensity of Competitive Rivalry

    6. 4.6 Impact of Regulatory and Legislative Landscape on Pension Funds

      1. 4.6.1 Portfolio Limits on Pension Fund Investment in Selected Asset Categories

      2. 4.6.2 Portfolio Limits on Pension Fund Investment in Selected Foreign Asset Categories

      3. 4.6.3 Recent Changes to the Pension Fund Investment Regulations

    7. 4.7 Impact of COVID-19 on Fund Schemes


    1. 5.1 By Plan Type

      1. 5.1.1 Distributed Contribution

      2. 5.1.2 Distributed Benefit

      3. 5.1.3 Reserved Fund

      4. 5.1.4 Hybrid

    2. 5.2 By Geography

      1. 5.2.1 North America

        1. United States

        2. Canada

        3. Rest of North America

      2. 5.2.2 Europe

        1. United Kingdom

        2. Switzerland

        3. Netherlands

        4. Rest of Europe

      3. 5.2.3 Asia-Pacific

        1. Australia

        2. Japan

        3. Rest of Asia-Pacific

      4. 5.2.4 Rest of the World


    1. 6.1 Overview (Market Concentration and Major Players)

    2. 6.2 Fund Profiles

      1. 6.2.1 Social Security Trust Funds

      2. 6.2.2 National RailRoad Retirement Investment Trust

      3. 6.2.3 California Public Employees' Retirement System

      4. 6.2.4 AT&T Corporate Pension Fund

      5. 6.2.5 1199SEIU Pension and Retirement Funds

      6. 6.2.6 National Eletrical Benefit Fund

      7. 6.2.7 Government Pension Investment Fund Japan

      8. 6.2.8 Caisse des Depots

      9. 6.2.9 Military Retirement Fund

      10. 6.2.10 Federal Retirement Thrift Investment Board*



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
By Geography
North America
United States
Rest of North America
United Kingdom
Rest of Europe
Rest of Asia-Pacific
Rest of the World

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Pension Fund Market Research FAQs

The Global Pension Funds Market size is expected to reach USD 72.39 trillion in 2023 and grow at a CAGR of 5.40% to reach USD 112.93 trillion by 2028.

In 2023, the Global Pension Funds Market size is expected to reach USD 72.39 trillion.

Social Security Trust Funds, AT&T Corporate Pension Fund, California Public Employees’ Retirement System, 1199SEIU Pension And Retirement Funds and National RailRoad Retirement Investment Trust are the major companies operating in the Global Pension Funds Market.

Australia and New Zealand is estimated to grow at the highest CAGR over the forecast period (2023-2028).

In 2023, the North America accounts for the largest market share in Global Pension Funds Market.

Pension Funds Industry Report

Statistics for the 2023 Pension Funds market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Pension Funds analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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