1. Market Research
  2. > Financial Services
  3. > Insurance Market Trends
  4. > Pension

The Business of Pensions: Get Market Research and Figures

  • Currently 3/5 Stars.
  • 1
  • 2
  • 3
  • 4
  • 5
12 votes

Global Pension Industry

A pension plan is a type of retirement plan, often tax exempt, wherein an employer and/or employee contribute to a pool of funds set aside for an employee’s future benefit. The funds are then invested, allowing the employee to receive benefits on retirement (as sort of a income insurance once his/her carreer ends).

According to Tower Watson, pension assets worldwide are worth over $35tn, equal to more than 50% of global GDP. Some of the largest pension funds are the Japanese and Norwegian governments’ funds, ABP of The Netherlands, the National Pension of South Korea and the U.S.’s Federal Retirement Thrift.

New regulations, the administrative complexity of these new rules, sustainability constraints and declining interest rates are some of the key challenges for the retirement fund sector.

Key Segments

The two key segments of the pensions industry are defined benefit (DB) and defined contribution (DC) schemes.

In DB plans an employer promises a specified retirement benefit that is predetermined by a formula based on the employee's earnings history, tenure of service and age, rather than depending directly on investment returns. Traditionally, many governmental and public entities, as well as a large number of corporations, provided defined benefit plans.

In DC schemes both employee and employer contributions are usually fixed as a percentage of salary. These contributions are invested to provide the retirement benefits. DC schemes do not provide any guarantees, and the benefits at retirement will depend on a number of different factors, including fund performance, plan charges and the annuity rates available at the time of retirement.

DC assets represent about 45% of global pension assets and in the past have grown faster than the DB assets. While DC is dominant in the U.S.A. and Australia, DB has an above 95% share in Japan, Canada and the Netherlands and about 75% in the UK.

Regional Market Shares

The top five retirement savings markets are the U.S.A., the UK, Japan, Australia and Canada. Other countries in the top ten are the Netherlands, Switzerland, Germany, Brazil and South Africa.  

The U.S.A.’s is the largest retirement fund industry, with assets over $18tn, equal to over 60% of the industry’s worldwide assets. DC assets are about 60%; the rest are DB assets. The largest U.S. pension funds include the California Public Employees’ Retirement System (CalPers), North Carolina State Pension Fund and the New York State Common Retirement Fund.

The UK is the world’s second largest market with assets over $3tn, equal to about 130% of its GDP. They have risen by more than 60% since 2003. The largest manager of UK pension assets is Legal & General Investment Management, followed by Insight Investment Management and BlackRock.

Japan, with assets also over $3tn, is third largest. According to the country’s Investment Advisors’ Association (JIAA), Japan’s top three retirement fund managers are Sumitomo Mitsui Trust Bank, Mizuho Trust & Banking and State Street Global Advisors. Although the domestic players hold the top two positions, foreign firms occupy 12 of the top 25 places.

Australia is the fourth largest market with total pensions assets around $1.5tn. Australian pensions have been investing more money in the U.S.A., Europe and emerging markets, and in stocks such as Google Inc. and Walt Disney Co. Australian Super Pty is the largest pension fund manager in the country.

Read more »

You might be interested in these related markets:

Customer Support

Talk to Sam

+1 646 893 5945

300 Reports
Company Financials, Economy, Company
980 Statistics
Finance, Company Financials, Company
3000 Reports
Company Financials, Economy, Company
3800 Statistics
Finance, Company Financials, Company
130 Reports
Economy, Demand, Demographic
490 Statistics
Finance, Company Financials, Market Size
56 Reports
Economy, Demographic, Demand
250 Statistics
Finance, Company Financials, Company
2000 Reports
Company Financials, Economy, Demand
4100 Statistics
Finance, Company Financials, Company
52 Reports
Economy, Demand, Company Financials
240 Statistics
Finance, Company Financials, Company
320 Reports
Company Financials, Economy, Demand
270 Statistics
Finance, Company Financials, Company
370 Reports
Company Financials, Economy, Company
670 Statistics
Finance, Company Financials, Company
13 Reports
Economy, Demographic, Demand
100 Statistics
Finance, Company Financials, Company
120 Reports
Economy, Company Financials, Company
750 Statistics
Finance, Company Financials, Company
Search in Pension Industry
Parent industry: Insurance
Related industries: Auto Insurance, Health Insurance, Life Insurance, Property Insurance, Reinsurance

99 reports

Purchase Reports From Reputable Market Research Publishers

Employee Benefits in China 2020

  • $ 1495
  • July 2020
  • 50 pages

Employee Benefits in China 2020 Summary China is the world’s largest country, based on population.Despite being the second-largest economy in terms of nominal GDP and purchasing power parity after the ...

  • Insurance
  • Medical Benefit
  • Pension
  • China
  • Economy

FinTrack - June 2020 $ 1295 July 2020

Reportlinker.com © Copyright 2020. All rights reserved.

ReportLinker simplifies how Analysts and Decision Makers get industry data for their business.

Make sure you don’t miss any news and follow us on