Global Pension Funds - Market Research Report (2013-2028)
New York, United States
Last Updated: September 2023
J5614-GLRevenue
$4.3tr
Past 5-Year Growth
Profit
$X.Xtr
Employees
152k
Businesses
239k
Wages
$XX.Xbn
Global Pension Funds industry analysis
Pension funds, composed of defined benefit (DB) and defined contribution (DC) plans, have been the primary means for meeting the retirement requirements of an aging global population. Industry revenue consists of contributions, investment income, net sales of securities and more. Positive investment returns from equities have driven the growth of revenue despite volatility in financial markets. Global pension funds revenue has been increasing at a CAGR of 1.3% over the past five years, including an estimated 2.7% in 2023 alone, and is expected to total $4.3 trillion in 2023, with profit set to drop to 38.4%.Employers are increasingly offering DC plans instead of DB plans, gradually shifting the responsibility of retirement benefits to employees and requiring them to contribute to their retirement account to ultimately assume some of the risks. To promote contributions, governments are using tax incentives to encourage individuals to save for retirement, and in some cases, are moving to compulsory systems. Overall, there has been more contributions as a result of this trend, in tandem with growing global per capita income, which has enabled employees to allocate more into their plans.More assets are expected to be allocated toward bonds as interest rates increase, which will likely lower revenue volatility. The shift toward DC plans will continue and elevate global contributions, fueling revenue growth. Global pension funds revenue is expected to grow at a CAGR of 2.9% to $4.9 trillion over the five years to 2028, when profit is estimated to reach 38.6%.
Trends and Insights
- Historically low interest rates and quantitative easing created a resilient equity market prior to COVID-19, supporting growth in investment income. The COVID-19 outbreak severely disrupted markets, causing large losses in the value of pension funds.
- Government-sponsored pension funds pledge a specified monthly benefit or lump sum on retirement. The increased costs associated with a larger older population is motivating governments to reduce public DB plans.
- The North American region dominates the Global Pension Funds industry, being home to two of the six largest pension fund markets in the world, the United States and Canada. North America's share of contributions is lower than its assets because of its large asset base, which enables it to benefit significantly from compounding investment income.
- The types of products and services are influenced by regulations. Regulations require certain minimum funding levels for retirement plans, which impact the pricing and competitiveness of different providers.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has grown at a CAGR of 1.3 % over the past five years, to reach an estimated $4.3tr in 2023.
Trends and Insights
Enduring fluctuations in recent years
- Before COVID-19, historically low interest rates and quantitative easing in most nations created a resilient equity market, supporting growth in investment income. The COVID-19 outbreak severely disrupted markets, causing large losses in the value of pension funds.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
The continued decline of defined benefit
- The tide will continue to turn away from defined benefit (DB) pension schemes, with a pivot towards defined contribution (DC) retirement plans and mandatory private savings accounts. This shift is set to diminish DB pension funds' growth.
Biggest companies in the Global Pension Funds
| Company | Market Share (%)
2023 | Revenue ($m)
2023 | Profit ($m)
2023 | Profit Margin (%)
2023 |
|---|---|---|---|---|
Government Pension Investment Fund | 178,655.1 | N/A | N/A | |
Federal Retirement Thrift Investment Board | 72,312.8 | N/A | N/A | |
National Pension Service of Korea | 72,312.8 | N/A | N/A |
To view the market share and analysis for all 4 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Private defined benefit plans, Public defined benefit plans and Defined contribution plans. Private defined benefit plans is the largest segment of the Global Pension Funds.
Trends and Insights
Public defined benefit plans are decreasing in popularity
- Government-sponsored pension funds, known as public defined benefit (DB) plans, pledge a specified monthly benefit or lump sum on retirement. The promised benefit is usually a calculated figure based on a variety of factors such as salary and service years.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Global Life & Health Insurance Carriers
Complementors
- Global Direct General Insurance Carriers
- Global Reinsurance Carriers
- Global Insurance Brokers & Agencies
International industries
- Retirement & Pension Plans in the US
- Superannuation Funds in Australia
- Superannuation Funds in New Zealand
- Pension Funding in the UK
- Pension Funding in Ireland
Table of Contents
About this industry
Industry definition
The Global Pension Funds industry comprises funds that are organized to provide retirement income benefits exclusively for the sponsor's employees or members. Plans are based on defined benefit and defined contribution plans. Revenue in this industry refers to total contributions plus net investment income or losses, while establishments refer to the number of funds. Fees from portfolio management or other third-party services are not included in this report.
What's included in this industry?
Providing defined benefit plans to beneficiariesCollecting employer and employee contributionsInvesting in assets to meet obligationsCompanies
Government Pension Investment FundFederal Retirement Thrift Investment BoardNational Pension Service of KoreaPurchase this report to view all 4 major companies in this industry.
Related Terms
DEFINED BENEFIT (DB) PLANDEFINED CONTRIBUTION (DC) PLANPENSION PLAN SPONSORPENSION FUND SERVICE PROVIDERPerformance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Historically low interest rates and quantitative easing created a resilient equity market prior to COVID-19, supporting growth in investment income. The COVID-19 outbreak sev...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Government-sponsored pension funds pledge a specified monthly benefit or lump sum on retirement. The increased costs associated with a larger older population is motivating g...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2023
- Product innovation level
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
The North American region dominates the Global Pension Funds industry, being home to two of the six largest pension fund markets in the world, the United States and Canada. N...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each region in 2023
- Number and share of revenue each region accounts for in 2023
- Number and share of wages each region accounts for in 2023
- Number and share of employees in each region in 2023
Detailed analysis
- Business Locations Charts
- Share of global output by region in 2023
- Share of population compared to output in each region in 2023
- Data tables
- Share of global output by region in 2023
- Detailed analysis
- Geographic spread of the industry across Global, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
The types of products and services are influenced by regulations. Regulations require certain minimum funding levels for retirement plans, which impact the pricing and compet...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2018-2023
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
The Global Pension Funds industry has no major companies. Differing retirement income and liquidity needs, investment horizons and risk tolerances among various groups of ind...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
- Overview of Government Pension Investment Fund's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Federal Retirement Thrift Investment Board's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of National Pension Service of Korea's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of revenue, market share and profit margin trend for one additional company
Detailed analysis
- Description and key data for Government Pension Investment Fund, and factors influencing its performance in the industry
- Description and key data for Federal Retirement Thrift Investment Board, and factors influencing its performance in the industry
- Description and key data for National Pension Service of Korea, and factors influencing its performance in the industry
- Description, key data and performance trends for one additional company
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Changes to regulations can have a significant impact on retirement and pension plans volatility. Government actions, such as changes to tax laws affecting retirement savings,...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2013-2028)
- Assistance historical data and forecast (2013-2028)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Profit varies extensively by the type of fund, investment strategy and country of operation. Some funds may invest their assets in riskier investment vehicles than other fund...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources globally include:
- United Nations Comtrade
- Organization for Economic Cooperation & Development
- World Bank
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Global Pension Funds industry in Global in 2024?
The market size of the Global Pension Funds industry in Global is $4.3tr in 2024.
How many businesses are there in the Global Pension Funds industry in 2023?
There are 239k businesses in the Global Pension Funds industry in Global, which has grown at a CAGR of 2.1 % between 2018 and 2023.
Has the Global Pension Funds industry in Global grown or declined over the past 5 years?
The market size of the Global Pension Funds industry in Global has been growing at a CAGR of 1.3 % between 2018 and 2023.
What is the forecast growth of the Global Pension Funds industry in Global over the next 5 years?
Over the next five years, the Global Pension Funds industry in Global is expected to grow.
What are the biggest companies in the Global Pension Funds market in Global?
The biggest companies operating in the Global Pension Funds market in Global are Government Pension Investment Fund, Federal Retirement Thrift Investment Board and National Pension Service of Korea
What does the Global Pension Funds in Global include?
Providing defined benefit plans to beneficiaries and Collecting employer and employee contributions are part of the Global Pension Funds industry.
Which companies have the highest market share in the Global Pension Funds in Global?
The company holding the most market share in Global is Government Pension Investment Fund.
How competitive is the Global Pension Funds industry in Global?
The level of competition is low and increasing in the Global Pension Funds industry in Global.
