What are the Historical Developments and Current Growth Metrics of the Pension Funds Market?
The pension funds market has seen considerable growth due to a variety of factors.
• The pension funds market has grown robustly in recent years. It will grow from $69,418.63 billion in 2024 to $75,726.94 billion in 2025, at a compound annual growth rate (CAGR) of 9.1%.
The growth is driven by the aging population, improved economic conditions, fluctuating long-term interest rates, changing regulations, stronger stock and bond market performance, inflation variations, and evolving corporate profitability.
What Is The Projected Growth Of The Pension Funds Template Market?
The pension funds market is expected to maintain its strong growth trajectory in upcoming years.
• The pension funds market is forecasted to reach $106,088.8 billion by 2029 at a CAGR of 8.8%.
Growth drivers include the focus on sustainability and ESG investing, digital transformation, economic uncertainty, regulatory changes, rising longevity risk, and fund consolidation. Key trends include the rise of defined contribution plans, digital retirement tools, interest in private equity, liability-driven investment strategies, and the impact of aging populations.
What Are The Key Drivers Fueling Growth In The Pension Funds Market?
The pension fund market's expansion is anticipated to be driven by a growing demographic demand for aging populations. Advancements in healthcare and medicine coupled with a decrease in birth rates has resulted in a rise in the life expectancy of people and a diminishing younger demographic to support seniors. There is an increasing need for pension funds and financial security among aging populations for maintaining a consistent income stream during retirement years as more people are living longer and birth rates are receding. In a report published by the United Nations, a major diplomatic and political organization in the US, in July 2022, it was estimated that the global population of people above 65 years would increase from 10% in 2022 to 16% by 2050. By mid-century, they project a considerable increase in this age group worldwide. Consequently, the escalating demographic demand for aging populations will trigger the acceleration of the pension fund market's growth.
What Are The Principal Market Segments In The Global Pension Funds Industry?
The pension funds market covered in this report is segmented –
1) By Type: Distributed Contribution, Distributed Benefit, Reserved Fund
2) By Application: Low Income Group, High Income Group
3) By End User: Government, Corporate, Individuals
Subsegments:
1) By Distributed Contribution: Defined Contribution Plans (DC Plans), Voluntary Contribution Plans, Employer-Sponsored Contribution Plans, Government-Sponsored Contribution Plans, Hybrid Contribution Plans (Combination Of Defined Benefit And Defined Contribution)
2) By Distributed Benefit: Defined Benefit Plans (DB Plans), Annuity Plans, Pooled Benefit Funds, Pension Benefit Plans, Public Sector Pension Benefit Plans, Private Sector Pension Benefit Plans
3) By Reserved Fund: Employer-Sponsored Reserved Fund Plans, Government-Sponsored Reserved Fund Plans, Multi-Employer Reserved Fund Plans, Self-Managed Reserved Funds, Reserve Fund For Pension Liabilities
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Which Emerging Market Trends Are Altering The Pension Funds Industry?
Leading businesses in the pension funds market are enhancing pension portability solutions through progressive pension tracing services, with the aim of bettering the consumer experience and simplifying the process of transferring pension assets between diverse plans. Pension tracing provides a holistic service to assist people in locating, authenticating, and gathering various pension plans amassed over their working lives. For example, Aviva plc, an insurance firm based in the UK, unveiled the country’s first 'find and amalgamate' pension tracing, examination, and amalgamation service in April 2024. This provision aids individuals in identifying multiple pension schemes they have accrued over their career years, evaluate and confirm the specifics of these pensions, and gather them into a single, more manageable plan. Advance tools and technology are also employed in this service to help users optimize retirement benefits and gain superior control over their financial prospects.
Who Are the Key Players In The Pension Funds Market?
Major companies operating in the pension funds market are:
• Allianz SE
• JPMorgan Chase & Co.
• Bank of America Corporation
• Prudential Financial Inc
• The Goldman Sachs Group Inc.
• UBS Group AG
• Deutsche Bank AG
• FMR LLC (Fidelity Investments)
• UTI Retirement Solutions Limited
• Aegon NV
• The Bank of New York Mellon Corporation
• BlackRock Inc
• State Street Corporation
• HDFC Life Insurance Company Limited
• The Vanguard Group Inc
• Northern Trust Corporation
• California Public Employees’ Retirement System (CalPERS)
• Mercer LLC
• Reliance Nippon Life Insurance Company Limited
• National Railroad Retirement Investment Trust
• National Electrical Benefit Fund
• ICICI Prudential Pension Funds Management Company Limited
• SBI Pension Funds Private Limited
• Tata AIA Life Insurance Company Limited
• Legal & General Group PLC
• Pacific Investment Management Company LLC (PIMCO)
What Are The Regional Insights Into The Pension Funds Market?
North America was the largest region in the pension funds market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the pension funds market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
