John Mitchem
March 20, 2015
Principal, JM3 Projects – Thought Leadership Strategies

Global Pension Fund Assets $36T – 84% of Global GDP

According to Towers Watson, the growth trend in global fund assets started in 2009. At the time, the growth rate was 18% compared to a 22% decline in 2008 when the assets dropped to $20 trillion. At present, the average annual growth rate of global pension fund assets is 6%.

Based on the study, the three largest pension fund markets are the United States, which accounts for 61.2% of the total pension assets. United Kingdom and Japan ranked second and third, which account for 9.2% and 7.9% of the total pension assets, respectively. The top three markets account for 78.3% of the total global pension fund assets.

The study found that defined contribution (DC) assets increased rapidly over the past ten years with a compound annual growth rate (CAGR) of 7%. DC pension assets rose from 38% of all pension assets in 2004 to 47% in 201.

On the other hand, the defined benefits (DB) assets have 4% CAGR. The study suggested that DC assets are expected to surpass DB assets for the next few years.

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