Global Pension Funds Market Forecast to Reach USD 88.28 Trillion by 2030, Driven by Shift to Defined‐Contribution and Private‐Market Investments

Mordor Intelligence has published a new report on the Pension Funds Market, offering a comprehensive analysis of trends, growth drivers, and future projections.

Pension Funds Market Overview

The global pension funds market is projected to expand from USD 67.16 trillion in 2025 to USD 88.28 trillion by 2030, growing at a compound annual growth rate (CAGR) of 5.62%. This steady rise reflects a transition in retirement savings strategies, public policy shifts, and strong demand from aging populations worldwide. With dynamic changes in how pensions are managed and invested, the industry is evolving to meet future retirement security needs.

Report Overview: https://www.mordorintelligence.com/industry-reports/global-pension-fund-industry

Key Trends

1. Rise of Defined‐Contribution Plans

Defined‐contribution (DC) plans, where contributions and investment performance determine benefits, now dominate the market-capturing 57.6% of global pension assets in 2024. These schemes are expected to grow at a 6.45% CAGR through 2030. The shift from traditional defined‐benefit pension models to DC schemes reflects both employer preference for cost certainty and policy support via auto-enrolment legislation.

2. Diversification into Private Markets

Pension funds are allocating more to alternatives like infrastructure, private equity, and private credit to boost returns amid low interest rates. Gains in private allocations are driven by regulatory encouragement and a search for higher yields.

3. Growth of Passive and ETF Strategies

Passive investing via index funds and ETFs is gaining traction. Although active management held 54.9% of the market in 2024, passive strategies are growing fastest with a projected 6.13% CAGR.

4. Public vs. Private Sponsor Trends

Public-sector sponsored pension plans held 69.3% of global assets in 2024, whereas private-sector plan assets are expanding faster-projected to increase at a 7.02% CAGR through 2030. This growth reflects corporate pension reforms and market-driven plan sponsorship.

5. Offshore Investment Expansion

While 73.4% of pension assets remain invested domestically, offshore allocations are expected to grow at a 5.97% CAGR from 2025 to 2030 . This trend points to a broader search for global diversification and access to broader return opportunities.

Market Segmentation

By Plan Type

Defined‐Contribution: Over half of the global pension assets; fastest growth at 6.45% CAGR through 2030

Defined‐Benefit and Hybrid Plans: Established, but increasing focus on reducing liabilities and exposure

By Investment Strategy

Active Management: Accounted for 54.9% of assets in 2024

Passive Strategies (ETFs, Index Funds): Fastest-growing segment with 6.13% CAGR

By Sponsor Type

Public‐Sector Plans: Held 69.3% of assets in 2024

Private‐Sector Plans: Growing more rapidly, projected 7.02% CAGR By Geography

North America: Largest market, holding 71.2% of global AUM in 2024

Asia‐Pacific: Fastest regional growth at 6.77% CAGR through 2030

Explore Our Full Library of Pension Funds Research Industry Reports - https://www.mordorintelligence.com/market-analysis/pension-funds

Key Players

Major pension funds continue to lead through size, diversification, and innovation in investment. Prominent organizations include:

California Public Employees' Retirement System (CalPERS) - One of the largest public pension systems, noted for its extensive allocations to private-market assets .

California State Teachers' Retirement System (CalSTRS) - A huge U.S. public pension provider often referenced alongside CalPERS .

Government Pension Investment Fund (Japan) - The world's biggest pension fund by AUM, managing Japan's public pension reserves .

National Pension Service (South Korea) - South Korea's central public pension provider and a major global institutional investor .

ABP (Netherlands) - The Dutch civil service scheme, among Europe's largest pension plans

These large schemes are migrating toward private-market assets and digital tools that improve governance, member communication, and operational efficiency.

Conclusion

The global pension funds market is charting a clear path toward larger scale and diversified strategies. By 2030, assets are expected to exceed USD 88 trillion-up from USD 67 trillion in 2025-through a compound annual growth rate of 5.62% . Defined-contribution plans and alternative investment channels are fueling much of this expansion. As public policymakers support broader plan access and pension schemes adopt new tools and asset channels, the industry is becoming more resilient and efficient-well-positioned to meet the retirement needs of aging populations in the coming decade.

Despite challenges like low yields and demographic pressures, the shift to private-market investment and global diversification offers a promising outlook. With ongoing innovation in administration and investment, pension funds are adapting effectively to secure retirement outcomes at scale.

Industry Related Reports

Canada Pension Funds Market: The Market is categorized based on several key factors. By plan type, it includes Defined Contribution (DC), Defined Benefit (DB), and Hybrid and other formats. In terms of investment strategy, the market is divided into active and passive approaches. Based on the type of sponsor, pension funds are classified as either public-sector or private-sector plans. Additionally, the market is segmented by the geography of investment, covering both onshore and offshore allocations.

To know more visit this link: https://www.mordorintelligence.com/industry-reports/canada-pension-fund-market

US Pension Funds Market: The United States pension fund industry is segmented by the type of pension plan, which includes Defined Contribution, Defined Benefit, Reserved Funds, and Hybrid plans.

To know more visit this link: https://www.mordorintelligence.com/industry-reports/us-pension-funds-market

United Kingdom Pension Funds Market: The market is segmented by plan type, including Defined Contribution (DC), Defined Benefit (DB), and Hybrid and other plans. It is also classified by investment strategy into active and passive approaches. Based on sponsor type, the market comprises public-sector and private-sector plans. Additionally, it is segmented by geography of investment, covering both onshore and offshore assets.

To know more visit this link: https://www.mordorintelligence.com/industry-reports/united-kingdom-pension-fund-market

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