GlobalPensionAssetsStudy|2025

GlobalPensionsAssetsStudy

03

04

Executivesummary

ThinkingAheadInstitute

14

30

37

Section1

Section2

Section3

AssetSize

AssetAllocation

DB/DCSplit

41

Section4

Methodology

43

Limitationsofreliance

?2025ThinkingAheadInstitute.Allrightsreserved.2

?2025ThinkingAheadInstitute.Allrightsreserved.3

GlobalPensionsAssetsStudy

TheThinkingAheadInstitute

TheThinkingAheadInstitute(TAI)isanot-for-profitresearchandinnovationnetworkmotivatedtoinfluencetheinvestmentindustryforthegoodofsaversworldwideandtomobilisecapitalforasustainablefuture.

Sinceitsestablishmentin2015,almost90investmentorganisationshavecollaboratedtobringthisvisiontolightthroughdesigningfit-for-purposeinvestmentstrategies,workingtowardsbetterorganisationaleffectivenessandstrengtheningstakeholderlegitimacy.ThisreportwasproducedincollaborationwiththeWTWMontevideo

ResearchServicesteam.

TheThinkingAheadGroupresearchteam

MarisaHall

AndreaCaloisi

JessicaGao

RogerUrwin

Tim

Hodgson

AnastassiaJohnson

?2025ThinkingAheadInstitute.Allrightsreserved.4

TAIGlobalPensionsAssetsStudy

Executivesummary

Overviewandkeyfindings

Executivesummary

Overview

P22

Thestudycovers22

pensionmarketsinthe

world(P22).Theyhave

pensionassetsof

USD58,511bn

P22markets

Australia,Brazil,Canada,Chile,China,

Finland,France,Germany,HongKong,

India,Ireland,Italy,Japan,Malaysia,

Mexico,Netherlands,SouthAfrica,South

Korea,Spain,Switzerland,UK,US

P7

Adeeperanalysisis

performedfortheP7,with

assetsof

USD53,517bn

P7markets

Australia,Canada,Japan,Netherlands,

Switzerland,UK,US

91%

ofP22assetsareinthesevenlargestmarkets

P195

OutsidetheP22we

estimatethereisan

additional

USD3-5tnofpension

assets

79%

TheGinicoefficientof

globalpensionassets

reflectingthe

concentrationinfew

markets

P22Markets

?2025ThinkingAheadInstitute.Allrightsreserved.5

Executivesummary

OverviewofP22Markets

P22

USD58,511bnTotalP22assetsestimatedtoyearend2024

65%

TheUSisthelargestmarket,

withashareof64.9%ofP22

assets,followedbyJapanand

Canadawith5.64%and

5.58%respectively

68%

RatioofpensionassetstoGDPoftheseeconomies

82%

TheUS,Japan,

CanadaandUK

represent81.5%of

allpensionassets

4.9%

%y/yincreasein2024P22

assetsfromUSD55,787bn

thepreviousyear

10.5%

Returnfora60%global

equities/40%globalbonds

referenceportfolioasof

December2024(inUSD)

TheassetsgrowthrateofUS,Japan,CanadaandUKwere7.2%,

-1.4%,3.0%and-2.0%respectivelyin2024(inUSD)

Itisimportanttonotetheimpactofcurrencyexchangerateswhen

measuringthegrowthofpensionassetsinUSDas,inmanycases,the

resultsvarysignificantlywithgrowthratesinlocalcurrencyterms.

?2025ThinkingAheadInstitute.Allrightsreserved.6

Executivesummary

OverviewofP7Markets

AssetAllocation

USandAustraliahave

higherallocationsto

equitiesthantherestof

P7markets

Japan,Netherlands

andtheUKhave

higherallocationto

bonds

Averageglobalassetallocationoftheseven,largestmarketsattheendof2024

45%33%20%2%

uEquitiesuBondsOtheraCash

?2025ThinkingAheadInstitute.Allrightsreserved.7

Theassetallocationpatternhaschangedsince

2003.Allocationtoequitiesandbondshas

decreasedwhileinvestmentsinotherassets

grewduringthesameperiod.

6.7%

GrowthrateofDCassetsinthelasttenyears

DB/DCsplit

ofDCassetsrepresentedintotalP7pensionassets

59%

2.1%

GrowthrateofDBassetsinthelasttenyears1

DCisdominantin

AustraliaandtheUS.Antrendofincreasetowards

DCallocationisshownacrossallmarkets

P7

Executivesummary

Top22pensionmarketsby

Market

TotalEstimatedAssets2024

(USDbillion)

US1

37,992

Japan2

3,300

Canada3

3,267

UK

3,139

Australia

2,639

Netherlands

1,747

Switzerland4

1,433

SouthKorea

1,098

Germany5

556

China6

480

Mexico

342

Malaysia

326

Finland

299

India

270

Italy

258

SouthAfrica

257

Brazil7

232

HongKong

224

Chile

198

France

166

Ireland

149

Spain8

142

Total

58,511

P22

assetsize

TotalP22AssetsareexpectedtoincreasefromUSD55,787bn(actual2023year-end)toUSD58,511bn(estimated2024year-end).

TheUSisthelargestmarket,withashareof64.9%ofP22assets,followedbyJapanandCanadawith5.64%and5.58%respectively.

1

2

3

4

5

6

7

8

IncludesIRAs.

Doesnotincludetheunfundedbenefitobligationofcorporatepensionplans(accountreceivables).Sourcechangedin2024edition.Numbermightnotbecomparabletoreportsofprioreditions.

Doesnotconsiderassetsofinsurancecompanies.

Onlyincludespensionassetsforcompanypensionschemes.

OnlyincludesEnterpriseAnnuityassets.

Onlyincludespensionassetsfromclosedentities.

NowincludesIndividualAssets.Numbermightnotbecomparabletoreportsofprioreditions.

Source:ThinkingAheadInstituteandsecondarysources

?2025ThinkingAheadInstitute.Allrightsreserved.8

Executivesummary

Globalassetownerlandscape

Assetownersgloballycontrol

USD188trillion

AssetOwners-strictlydefined

PensionFunds

SovereignWealthFunds

Endowments&Foundations

MutualFunds(incETF)

InsuranceFunds

40.2

63.0

13.72.3

68.9

Whatisanassetowner?

Anassetownerhasfourqualifyingcharacteristics:

Worksdirectlyforadefinedgroupofbeneficiaries/savers/investorsasthemanageroftheirassetsinafiduciarycapacityunderdelegatedresponsibility

Workswithasponsoringentity(government,governmentaffiliate,companyornot-for-profit)

Workswithinexplicitlawandpossessesanimplicitsocietallicensetooperatebecauseofitssocietaltrustandlegitimacy

Deliversmission-specificoutcomestobeneficiariesandstakeholdersintheformofvariouspaymentsorbenefitsintothefuture

AssetOwners-looselydefined

Pensionfunds,sovereignwealthfundsandendowments

andfoundationsclearlyqualifyasassetowners,while

mutualfundsandinsurancefundspartlyqualify.

Readmoreaboutassetowners

TheAO100survey

Thesurveyprovidesanalysisofthe

100largestassetownersinthe

market-themostinfluentialcapital

ontheplanet

TheAssetOwnerof

Tomorrow

Providesinsightintothe

complexityofbeinganasset

ownertoday.

?2025ThinkingAheadInstitute.Allrightsreserved.9

Executivesummary

Spotlightsubjects(1)

Macrouncertaintyandsystemicrisk

Overall,2024wasayearofgloballyunevenperformancewithstrongreturnsforriskassets,underpinnedbyU.S.economicstrengthandselectivegainsinemergingmarkets.

U.S.equities,achievedatotalreturnexceeding20%forthesecondconsecutiveyear,withtechnology-orientedstocksleadingthemarket.

Interestrateshavegenerallyremainedelevatedwiththeglobaleconomicoutlookstill

uncertainduetogeopoliticaltensionsandsluggishgrowth.Centralbanksarecarefully

balancingtheneedtocontrolinflationwiththerisksofslowingeconomicactivity.Demandandsupplyimbalancespersistinmajoradvancedeconomies.

Climateriskhasemergedasasignificantconsideration,withitsimplicationsforlong-terminvestmentstrategiesbecomingincreasinglyevident.Theimpactofgeopoliticalshiftsandthechangingwindsinpoliticsareinfluencingpensionfundstrategiesandfiduciaryduties,necessitatingamoreproactiveandadaptiveapproachtoriskmanagement.

Aswemoveinto2025,thefinancialsectormustremainvigilant,adjustingstrategiesto

addresstheevolvinglandscapeofsystemicriskswherethereareincreasingconcernsinparticularaboutrisksarisingfromgeo-politicalandclimatesources.Thisinvolvesaligningstrategieswiththechangingmacro-economiccircumstances-notablyongrowthand

inflationwhileensuringthatinvestmentdecisionsalignwiththebroadersocio-politicalandenvironmentalrealities.

?2025ThinkingAheadInstitute.Allrightsreserved.

10

Executivesummary

Spotlightsubjects(2)

Increasinginfluenceofpoliticsonpensionfunds

Theinfluenceofgovernmentsandpoliticsonpensionfundshasbecomemorepronouncedinrecentyears,drivenbysignificantgeopoliticaleventsandmajorelectionsthathaveshiftedpoliticaldirectionsinkeyregions.Inrecenttimes,shiftsinpoliticalpoweraremorelikelytoinfluencemarketsandpensionfundpoliciesthantheywereinthepast.

Theprimaryimpactofgovernmentshasbeenthroughregulationandalsoviatheir

influenceaskeystakeholders,whichhasexpandedinlinewiththeincreasingsizeof

assetpoolsandthegrowingsignificanceofpensionsinsociety.NotableexamplesofthiscanbeseenincountriessuchasCanada,Australia,andtheUKwheretherehasbeen

encouragementbygovernmenttoinvestmoredomestically.

Therehasalsobeenaconsiderableinfluenceonpensionfundsthroughtheadvancementofnetzeropolicieswithinthefinancialsector.Althoughpensionfundinvestment

decisionsrestwithtrusteeboardsthatoperatewithinfiduciaryduties,theirnetzerocommitmentsoftenreflectgovernmentpoliciesandincentives.

Investmentindustrymustnavigatethecomplexlandscapewherepoliticalshiftscan

influencemarketstability,regulatoryframeworksandeconomicprioritieswhilebalancingthesechallengeswithfiduciarydutyobligations.

?2025ThinkingAheadInstitute.Allrightsreserved.

11

Executivesummary

Spotlightsubjects(3)

Riseinalternativeassets

Pensionschemescontinuetoturntoalternativeinvestments,suchasprivateequity,

property,andhedgefunds,andmorerecentlyprivatedebtandinfrastructure,todiversifytheirportfoliosandboostreturns.Thesealternativesofferthepotentialforhigherreturnandreducedcorrelationwithtraditionalassetslikeequitiesandbonds,enhancingoverallportfoliorobustness.

Beyondfinancialreturns,alternativeinvestmentscanplayabiggerrolethanlistedassetsincontributingtoachievingbroadersocietalgoals,particularlythoserelatedtoclimate

changeandsustainability.Thegoalsformanypensionfundsareachievingreal-world

impactscontributingpositivelytotheenvironmentandsociety,withoutcompromisingonfinancialreturns.

Inthepast,alternativeinvestmentswereoftengroupedintoasinglecategorydistinct

fromtraditionalassetslikeequitiesandbonds.Theyweregenerallyperceivedasnon-correlatedassetsthatprovideddiversificationbenefits.However,thenewerversionsofalternativeinvestmentshavebecomemoregranular,allocatingcapitalacrossvariousdistinctassetclassessuchasequity,debt,realestate,commodities,liquidalternativesandinfrastructure.Thismoregranularapproachallowsforamorenuancedinvestmentstrategy,tailoringexposurestospecificsegmentswithinthebroaderalternative

investmentspaceandenhancingdiversificationwithintheportfolio.

?2025ThinkingAheadInstitute.Allrightsreserved.

12

Executivesummary

Spotlightsubjects(4)

Pensionfunds'increasingfocuson‘organisationalalpha,

‘Organisationalalpha’referstotheuniquecombinationofpeople,processes,skills,and

governancewithinapensionfundorganisationthatcollectivelycontributetoitsabilitytocreate

sustainablevalue.Assessingandenhancingorganisationalalphaiscrucialforbuildingthe

organisationalresiliencetobuildportfoliosthatmeetinvestmentgoalsinfast-changingconditions.

Theorganisationalcapabilitiesofapensionfundcombinevariouselements-businessmodel,

peopleandgovernance-intoacohesivewholethatdrivesthevisionandstrategicdirection.Thebusinessmodeldefineshowanorganisationcreatesanddeliversvalue,whilethepeopleand

governancestructuressupportitsoperationalsuccess.Smallercomponents,suchasthedesignofinternalprocessesanddecision-makingframeworks,serveasthebuildingblocksthatfeedintothelargervision.Byaligningtheseelementseffectively,organisationsshouldaimtocreatean

environmentwhereeachpartcontributestotheoverarchinggoalsandobjectives.

Understandingtheorganisationalalphaconceptenablesorganisationstobetterdevelopandadapttheircapabilitiesandpracticestomeetbestpracticestandards.

?2025ThinkingAheadInstitute.Allrightsreserved.

13

?2025ThinkingAheadInstitute.Allrightsreserved.14

TAIGlobalPensionsAssetsStudy

Section1|Assetsizes

Assetsize

1

2

3

4

5

6

7

8

Assetsizes

Market

TotalEstimatedAssets2024

(USDbillion)

Assets/GDPratio(%)

Switzerland4

1,433

152.06%

Canada3

3,267

147.51%

Australia

2,639

146.43%

Netherlands

1,747

143.39%

US1

37,992

130.25%

Finland

299

97.54%

UK

3,139

87.50%

Japan2

3,300

81.07%

Malaysia

326

74.23%

SouthAfrica

257

63.66%

Chile

198

60.20%

SouthKorea

1,098

58.73%

HongKong

224

55.67%

Ireland

149

26.59%

Mexico

342

18.48%

Germany5

556

11.80%

Italy

258

10.84%

Brazil7

232

10.59%

Spain8

142

8.19%

India

270

6.95%

France

166

5.22%

China6

480

2.62%

Total

58,511

68.40%

Source:ThinkingAheadInstituteandsecondarysources

?2025ThinkingAheadInstitute.Allrightsreserved.15

P22

TotalP22Assetsareexpected

toincreasefromUSD55,787

bn(actual2023year-end)to

USD58,511bn(estimated

2024year-end).

IncludesIRAs.

Doesnotincludetheunfundedbenefitobligationofcorporatepensionplans(accountreceivables).Sourcechangedin2024edition.Numbermightnotbecomparabletoreportsofprioreditions.

Doesnotconsiderinsurancecompaniesassets.

Onlyincludespensionassetsforcompanypensionschemes.

OnlyincludesEnterpriseAnnuityassets.

Onlyincludespensionassetsfromclosedentities.

NowincludesIndividualAssets.Numbermightnotbecomparabletoreportsofprioreditions.

Assetsize

P22

P7

Pensionassetgrowthversusmarketreturns

PeriodtoendDecember2024

TotalassetsgrowthinUSD

-Allcountries1

Annualized

TotalassetsgrowthinUSD

-P7countries2

Annualized

Referenceportfolioreturn3

60%GlobalEquity/40%GlobalDebt

Annualized

1-year

4.90%

5.20%

10.50%

5-year

4.30%

4.20%

6.00%

10-year

4.70%

4.60%

6.10%

20-year

5.40%

5.20%

5.90%

Source:ThinkingAheadInstituteandsecondarysources

Totalpensionassetgrowthhasbeenquitecloselymatchedtoglobalpublicmarketequityandbondreturnsoverthelast20years.

Thereferenceportfolioreturnsareasimpleproxyformarketreturnsusedbysomefunds-inpracticefundsseektooutperformthisreturnbyadoptingdifferentmixesofassettothe60/40splitinthereferenceportfolio.Inparticular,fundshavelargealternativeassetsexposures.

Pensionassetgrowthincludesnetcashflows-contributionsinandbenefitsout.Mostcalculationssuggestthatthisamounthasbeenquitesmallrelativetothesizeofassetsandmarketgrowth.

1GrowthinallcountriesnotadjustedforthechangefromusingP11toP22overtheperiod

2FiguresforP7arelike-for-likeinthe7countriesselected

3ReferencePortfoliousedbysomepensionfundsasperformancecomparatorforanaveragelysizedriskappetite.TheReferencePortfolioisrebalancedannually.Source:MSCIACWIIndexandBloombergBarclaysGlobalAggregateBondIndex.AllcalculationsinUSdollars.

?2025ThinkingAheadInstitute.Allrightsreserved.16

Assetsize

EvolutionofP7ranking:USDbnassets

P7

P7rankremainsmostlyunchangedfrompast5years

2004

US

11,690

Japan

2,954

UK

1,755

Canada

1,189

Netherlands

740

Australia

553

Switzerland

530

20042014201920212024e

Evolutionofassetsundermanagement(USDbn)

2024e

US

37,992

Japan

3,300

Canada

3,267

UK

3,139

Australia

2,639

Netherlands

1,747

Switzerland

1,433

overthepasttwodecades

2014

US

21,708

UK

3,272

Japan

2,693

Canada

2,555

Australia

1,548

Netherlands

1415

Switzerland

788

Source:ThinkingAheadInstituteandsecondarysources

AustraliaCanadaJapanNetherlandsSwitzerlandUSUK

?2025ThinkingAheadInstitute.Allrightsreserved.17

Assetsize

AssetallocationandDB/DCsplit

P7

Assetallocation2024DB/DCSplit2024

DBDC

89%

uEquityuBondsOtheruCash

11%

Australia

10%

24%

14%

52%

46%

1%

14%3%

23%3%

56%

44%

29%

27%

27%

23%

Canada

Japan

Netherlands

5%

55%

95%

7%

47%

93%

1

2

34%

4%

3%

2%

2%

32%

30%

Switzerland

UK

US

P7

27%

17%

17%

25%

56%

73%

69%

31%

50%

31%

59%

45%

33%

20%

41%

Source:ThinkingAheadInstituteandsecondarysources

1ThemajorityofpensionfundassetsinSwitzerlandareDCandtaketheformofcashbalanceplans,wherebytheplansponsorsharestheinvestmentriskandtheassetsarepooled.PureDCassetshaveonlyrecentlybeenintroducedinSwitzerlandand,althoughtheyhaveseenstronggrowth,theyarenotyetlargeenoughtojustifyinclusioninthisanalysis.

2InJanuary2017,theUK’sOfficeforNationalStatisticsstatedthatthefigurespreviouslydisclosedforDCentitlementsweresignificantlyoverestimated.Asaresult,thereisasignificantdecreaseinUKDCpensionassetswhencomparedtothepreviouseditionsofthisstudy.ThischangehasaverylimitedimpactontheP7DCassets;intheorderofaonepercentreduction.

?2025ThinkingAheadInstitute.Allrightsreserved.18

Assetsize

Concentrationofassetsintop300pensionfunds

50%

40%

30%

20%

10%

0%

41%

17%

2023

Top20fundsas%ofGlobalPensionAssets

300biggestfundsas%ofGlobalPensionAssets

Theannual

Pension&Investments/ThinkingAhead

Instituteglobaltop300pensionfunds

studyranksthe

world'slargest300pensionfundsbyassets.

Concentrationofthetop300andtop20pensionfunds,

comparedtototalglobalassets,hasremained

unchangedforthelast5years.

Theassetsofthetop300pensionfundsrepresent41%

ofthetotalglobalpensionassetsandthetop20pension

fundsaccountfor17%oftotalglobalpensionassets.

Source:ThinkingAheadInstituteandsecondarysources

?2025ThinkingAheadInstitute.Allrightsreserved.19

Assetsize

Relativesizeoftoppensionfundsbymarket

2.4%

%oftotalassets

2.0%

1.6%

1.2%

0.8%

0.4%

0.0%

3.5%

%oftotalassets

3.0%

2.5%

2.0%

1.5%

1.0%

0.5%

0.0%

US

020406080100120140Fundsranking

UK

024681012141618Fundsranking

%oftotalassets

50.0%

40.0%

30.0%

20.0%

10.0%

0.0%

Japan

024681012Fundsranking

ThetoptenUSpensionfundsrepresent8.0%oftotalUSassets.

ThetoptenJapanesepensionfundsaccountfor67.9%oftotalJapaneseassets.ThisisbecausetheGovernmentPensionInvestmentFundthatrepresents47.6%ofJapan’spensionassets.

IntheUK,thetoptenpensionfundsrepresent14.0%ofthetotalUKpensionassets.Amongthem,6.0%areprivatepensionfundsandthe8.0%arestate-sponsoredpensionfunds.

Source:ThinkingAheadInstituteandsecondarysources

?2025ThinkingAheadInstitute.Allrightsreserved.20

Assetsize

Adecadeofgrowthwithturbulence

In2024globalpensionassetsareestimatedtohavereachedUSD58,511billion,anincreaseofalmost5%inayear.

HongKong

India

Ireland

TheUSisthelargestpensionmarketfollowed,atsignificantdistance,bytheJapan,UKandCanada.Together,thesefourmarketsaccountforover82%ofallpensionassets.

Market

Growthrate(USD)10-yearCAGR

5.50%

Australia

Brazil

-0.10%

2.50%

Canada

Chile

1.80%

14.40%

China

Finland

3.50%

0.40%

France

Germany

2.10%

6.20%

11.50%

1.30%

Italy

4.90%

2.10%

Japan

Malaysia

4.20%

5.80%

Mexico

Netherlands

2.10%

1.40%

SouthAfrica

SouthKorea

7.10%

1.70%

Spain1

Switzerland

6.20%

-0.40%

UK

US

Total(USD)

5.80%

4.70%

TotalAssets(USDbn)Yearend2014

TotalAssets(USDbn)Yearend2024e

1,548

2,639

234

232

2,555

3,267

166

198

125

480

211

299

159

166

451

556

123

224

91

270

131

149

159

258

2,693

3,300

216

326

195

342

1,415

1,747

224

257

554

1,098

120

142

788

1,433

3,272

3,139

21,708

37,992

37,138

58,511

Source:ThinkingAheadInstituteandsecondar