By Research and Markets

The pension funds market size has grown strongly in recent years. It will grow from $63.8 trillion in 2023 to $69.41 trillion in 2024 at a compound annual growth rate (CAGR) of 8.8%. The growth observed in the historic period was driven by several factors, including increasing aging populations, improving economic conditions and growth rates, fluctuating long-term interest rates, evolving legislative and regulatory frameworks, enhanced performance in stock and bond markets, varying inflation rates, and changes in corporate profitability.

The pension funds market size is expected to see strong growth in the next few years. It will grow to $97.59 trillion in 2028 at a compound annual growth rate (CAGR) of 8.9%. Anticipated growth in the forecast period is expected due to a heightened focus on sustainability and ESG (Environmental, Social, and Governance) investing, increased adoption of digital transformation and fintech, ongoing economic uncertainties, evolving regulatory frameworks, shifting trends in interest rates, rising longevity risks, and consolidation among pension funds. Major trends in this period include the rise of defined contribution (DC) plans, integration of digital tools in retirement planning, growing interest in private equity and alternative investments, adoption of liability-driven investment (LDI) strategies, and the impact of aging populations on fund management.

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