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

The United Kingdom's pension fund market is segmented by types of pension plans (distributed contribution, distributed benefit, reserve fund, and hybrid). The report offers market size and values in USD million during the forecasted years for the above segments.

UK Pension Fund Market Size

UK Pension Fund Market Summary
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Study Period 2019-2028
Market Size (2023) USD 4.08 Trillion
Market Size (2028) USD 5.01 Trillion
CAGR (2023 - 2028) 4.22 %
Fastest Growing Market Australia and New Zealand
Largest Market North America

Major Players

UK Pension Fund Market Major Players

*Disclaimer: Major Players sorted in no particular order


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UK Pension Fund Market Analysis

The United Kingdom Pension Fund Market size in terms of assets under management value is expected to grow from USD 4.08 trillion in 2023 to USD 5.01 trillion by 2028, at a CAGR of 4.22% during the forecast period (2023-2028).

West societies are considered developed societies, and with a heavier taxation level, a large sum of money is invested in the social security of their population, of which pension funds are a part.

With the advent of COVID-19, most societies put an important focus on social security, with the result that the total assets of pension funds increased, signifying a continuous increase in people's interest in investing in pension funds in a growing pension fund market.

With these continuous trends of increasing population growth, rising inflation, and increasing financial education of people towards saving a chunk of their money for retirement days, the pension funds market in Canada is expected to observe continuous growth in the future.

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.

UK Pension Fund Market: Population of United Kingdom in 2019-2022, In Million

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 Market: Workforce jobs in United Kingdom, Millions, (2018-2022)

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

  1. Wealthify

  2. Penfold

  3. AJbell

  4. Pensionbee

  5. Bestinvest

*Disclaimer: Major Players sorted in no particular order

UK Pension Fund Market Concentration

UK Pension Fund Market News

  • January 2022: ZEDRA acquired the leading independent Pension Trustee and Governance services provider, PTL. PTL was one of the leading Professional Trustee firms in the UK, acting for Pension Schemes, Group Life Trusts, and Healthcare Trusts.
  • August 2022: Penfold closed a deal of 8.6 million USD for its digital pension service with Bradford Group. Lead investor Bradford Group invested across tech, sustainability, and biotech, and the FCA authorizes Penfold, and has more than 60,000 users.

Table of Contents


    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study




    1. 4.1 Market Overview

    2. 4.2 Market Drivers

      1. 4.2.1 Shift to Capital Light Products from traditional products.

      2. 4.2.2 A push for technology led engagement

    3. 4.3 Market Restraints

      1. 4.3.1 Market Volatility affecting pension funds market.

      2. 4.3.2 Changing demographic structure and Organizational factor

    4. 4.4 Market Opportunities

      1. 4.4.1 Rising interest rate driving fund allocation.

      2. 4.4.2 Increased demand from Pension scheme for insurance buyout.

    5. 4.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.5.1 Bargaining Power of Buyers

      2. 4.5.2 Bargaining Power of Suppliers

      3. 4.5.3 Threat of New Entrants

      4. 4.5.4 Threat of Substitutes

      5. 4.5.5 Intensity of Competitive Rivalry

    6. 4.6 Insights of Technology Innovations in the Market

    7. 4.7 Insights on Various Regulatory Landscape

    8. 4.8 Impact of COVID-19 on the Market


    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


    1. 6.1 Market Concentration Overview

    2. 6.2 Company Profiles

      1. 6.2.1 Wealthify

      2. 6.2.2 Penfold

      3. 6.2.3 AJBell

      4. 6.2.4 Bestinvest

      5. 6.2.5 Pension Bee

      6. 6.2.6 Interactive Investors

      7. 6.2.7 Hargreaves Lansdown

      8. 6.2.8 Money Farm

      9. 6.2.9 Zedra

      10. 6.2.10 Prudential*

    3. *List Not Exhaustive


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 types of pension plans (distributed contribution, distributed benefit, reserve fund, and hybrid). The report offers market size and values in USD million during the forecasted years for the above segments.

By Plan Type
Distributed Contribution
Distributed Benefit
Reserved Fund

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Frequently Asked Questions

The UK Pension Fund Market size is expected to reach USD 4.08 trillion in 2023 and grow at a CAGR of 4.22% to reach USD 5.01 trillion by 2028.

In 2023, the UK Pension Fund Market size is expected to reach USD 4.08 trillion.

Wealthify, Penfold, AJbell, Pensionbee and Bestinvest are the major companies operating in the UK Pension Fund 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 UK Pension Fund Market.

UK Pension Fund Industry Report

Statistics for the 2023 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 2023 to 2028) and historical overview. Get a sample of this industry analysis as a free report PDF download.

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