UK Pension Fund Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 4.25 Trillion |
| Market Size (2029) | USD 5.22 Trillion |
| CAGR (2024 - 2029) | 4.22 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
UK Pension Fund Market Analysis
The UK Pension Fund Market size in terms of assets under management value is expected to grow from USD 4.25 trillion in 2024 to USD 5.22 trillion by 2029, at a CAGR of 4.22% during the forecast period (2024-2029).
The UK government sets regulations and standards for pension funds to ensure their stability, security, and transparency. Changes in legislation can impact investment strategies, contribution levels, and retirement benefits. Economic downturns or fluctuations can affect investment returns and funding levels. Population aging and changes in life expectancy impact pension fund liabilities and funding requirements. Demographic shifts also influence investment strategies to ensure long-term sustainability. Pension funds allocate assets across various investment classes, including equities, fixed income, real estate, and alternative investments. Asset allocation decisions are influenced by risk appetite, return expectations, and market conditions. Effective governance and risk management practices are critical for pension funds to fulfil their fiduciary duties and manage investment risks. Governance structures, investment policies, and risk mitigation strategies are important considerations. Reforms to the pension system, such as changes to retirement age, pension eligibility criteria, and contribution rules, can impact pension fund dynamics and member outcomes. Advancements in financial technology (fintech) and data analytics enable pension funds to enhance operational efficiency, investment decision-making, and member engagement. Overall, the UK pension fund market is shaped by a combination of regulatory, economic, demographic, investment, governance, and technological factors.
UK Pension Fund Market Trends
Ageing population rate in United Kingdom affecting United Kingdom Pension Funds Market
As a country's population grows, there is naturally an increase in the aging population and the number of people reaching senior or retirement age. The United Kingdom had observed a steady increase in population growth over the period, and it observed a population level of 67.02 million, a small decline from its level.
With this demographic of continuous increase in the aging population, the pension funds market establishes itself as an emerging opportunity for the United Kingdom. During the previous year, almost 5% of the total population existed in the age group above 60, and around 6% in the age group 55-59 were nearing retirement age. In the current year, the United Kingdom had 0.847 million people in the age group of 60, which is expected to increase further. This trend shows a positive market for pension funds in the United Kingdom.
Increase in pension investment opportunity affecting Pension Funds Market in United Kingdom
With the growing industrialisation and the IT sector employing a large number of the population companies are shifting from pay-as-you-go pension schemes towards funding pension arrangements. With this companies invest individual saving in financial assets making pension funds key investors in both listed and non-listed firms.
The number of Workforce jobs in the United Kingdom observed a continuous increase over the years, with around 35 Mn population engaged in a job during last year. This creates an increase in pension fund accounts being created for employees and creates a positive environment for investment in the Pension funds market and creates benefits for the employees as well as the company.
UK Pension Fund Industry Overview
Wealthify, Penfold, AJBell, Bestinvest, Pension, Interactive Investors, Hargreaves Lansdown, Money Farm, Net Wealth, and Profile Pension are private pension fund providers in the United Kingdom. Pension funds, compared to other institutional investors, which typically move rapidly in and out of companies' stocks depending on earnings and other short-term factors, have a tendency to stay committed to a firm for the long term and provide the type of finance required to support innovative projects. By concentrating ownership, pension funds represent an effective instrument to stem managers' propensity to support inefficient and short-sighted strategies. With this trend, companies are expanding their businesses and focusing on their pension fund assets, creating a market for the pension fund.
UK Pension Fund Market Leaders
Wealthify
Penfold
AJbell
Pensionbee
Bestinvest
*Disclaimer: Major Players sorted in no particular order
UK Pension Fund Market News
- In January 2024, Aptia, a fresh player in the pensions, health, and benefits administration sector, has been formally introduced. The company's inception follows its initial announcement in June 2023, which came after Bain Capital Insurance acquired the UK pension administration and US health and benefits administration segments of Mercer.
- In June 2023, NatWest Group finalized the purchase of a majority stake in Cushon, a fintech specializing in workplace savings and pensions. The agreement, reached in February 2023, saw NatWest Group acquiring 85% of Cushon for Euro 144 million (USD 157.37 million), while Cushon management retained the remaining 15%. This acquisition received approval from the Financial Conduct Authority (FCA) in May.
UK Pension Fund Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS AND INSIGHTS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Shift to Capital Light Products from traditional products.
4.2.2 A push for technology led engagement
4.3 Market Restraints
4.3.1 Market Volatility affecting pension funds market.
4.3.2 Changing demographic structure and Organizational factor
4.4 Market Opportunities
4.4.1 Rising interest rate driving fund allocation.
4.4.2 Increased demand from Pension scheme for insurance buyout.
4.5 Industry Attractiveness - Porter's Five Forces Analysis
4.5.1 Bargaining Power of Buyers
4.5.2 Bargaining Power of Suppliers
4.5.3 Threat of New Entrants
4.5.4 Threat of Substitutes
4.5.5 Intensity of Competitive Rivalry
4.6 Insights of Technology Innovations in the Market
4.7 Insights on Various Regulatory Landscape
4.8 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Plan Type
5.1.1 Distributed Contribution
5.1.2 Distributed Benefit
5.1.3 Reserved Fund
5.1.4 Hybrid
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 Wealthify
6.2.2 Penfold
6.2.3 AJBell
6.2.4 Bestinvest
6.2.5 Pension Bee
6.2.6 Interactive Investors
6.2.7 Hargreaves Lansdown
6.2.8 Money Farm
6.2.9 Zedra
6.2.10 Prudential*
- *List Not Exhaustive
7. MARKET FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
UK Pension Fund Industry Segmentation
The pension fund accumulates capital, which will be paid out as a pension for employees when they retire at the end of their careers. The pension fund market aggregates the large sum of money invested in the capital market through bonds and stocks to generate profits.
The United Kingdom pension fund market is segmented by plan type and is sub-segmented into distributed contribution, distributed benefit, reserve fund, and hybrid.. The report offers market size and values in (USD) during the forecasted years for the above segments.
| By Plan Type | |
| Distributed Contribution | |
| Distributed Benefit | |
| Reserved Fund | |
| Hybrid |
UK Pension Fund Market Research Faqs
How big is the UK Pension Fund Market?
The UK Pension Fund Market size is expected to reach USD 4.25 trillion in 2024 and grow at a CAGR of 4.22% to reach USD 5.22 trillion by 2029.
What is the current UK Pension Fund Market size?
In 2024, the UK Pension Fund Market size is expected to reach USD 4.25 trillion.
Who are the key players in UK Pension Fund Market?
Wealthify, Penfold, AJbell, Pensionbee and Bestinvest are the major companies operating in the UK Pension Fund Market.
What years does this UK Pension Fund Market cover, and what was the market size in 2023?
In 2023, the UK Pension Fund Market size was estimated at USD 4.07 trillion. The report covers the UK Pension Fund Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the UK Pension Fund Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
UK Pension Fund Industry Report
Statistics for the 2024 UK Pension Fund market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. UK Pension Fund analysis includes a market forecast outlook to for 2024 to 2029) and historical overview. Get a sample of this industry analysis as a free report PDF download.
