Continued growth: Despite employers' shift to defined contribution plans, the industry will grow as populations age

The Global Pension Funds industry, composed of employer-sponsored defined benefit plans, has been the primary means for meeting the retirement requirements of an aging global population. In recent years, employers have increasingly been shifting the financial risks of retirement savings to employees, opting instead for defined contribution plans not included within this industry. Industry revenue, which comprises employer contributions and investment income, has surged over the past five years, recovering from a period of depressed asset values following the global recession...purchase to read more.

Industry Statistics & Market Size
Revenue
$3tr
Annual Growth 13-18
2.5%
Forecast Growth 18-23
Profit
Employment
354,539
Businesses
318,219
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • With the government unable to accommodate the influx of retired individuals, privatization will increase
  • Industry Report - Industry Products Chapter

    In general, there are two types of defined benefit (DB) plans: public and private. All DB plans are occupational pensions, meaning that they are sponsored by employers to provide retirement income benefits exclusively for pension fund members. Public DB plans are pension funds sponsored by governments, while private DB plans are pension funds sponsored by businesses. Overall, DB plans are projected to account for 52.0% of pension fund assets in 2018.Over the past 25 years, private and public DB retirement plans have fallen significantly compared with defined contribution (DC) plans. However, private DB plans are declining more rapidly than public plans as businesses increasingly move toward DC plans. The...purchase to read more.

    Additional Insights for the Global Pension Funds Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Global Pension Funds Industry are

  • Economies of scope
  • Ability to maintain adequate asset reserves
  • Ability to produce consistent investment returns
  • IBISWorld analysts also discuss how external factors such as Global unemployment rate and Global number of adults aged 65 and older in the Global Pension Funds industry impact industry performance..

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    What's in this report

    What is the Global Pension Funds Industry?

    This 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 exclude defined contribution. Revenue in this industry refers to total contributions plus net investment income or losses, while establishments refer to the number of funds. The majority of funds are nonemployers. Fees from portfolio management or other third-party services are not included in this report.

    Industry Products
  • Defined benefit retirement plans
  • Defined contribution retirement plans
  • Industry Activities
  • Providing defined benefit plans to beneficiaries
  • Collecting employer and employee contributions
  • Investing in assets to meet obligations
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Global unemployment rate
  • Global number of adults aged 65 and older
  • MSCI World Index
  • LIBOR - London Interbank Offered Rate

  • Current Performance
    Enduring fluctuationsAging global population
  • Chart: Revenue Growth

  • Industry Outlook
    Decline of defined benefitFlight to defined contribution
  • Table: Global Pension Funds Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Global Pension Funds Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Global Life & Health Insurance Carriers
  • Global Insurance Brokers & Agencies
  • Global Consumers

  • Key Selling Industries
  • Global Accounting Services
  • Global Internet Service Providers
  • Global Investment Banking & Brokerage

  • Products & Services
  • Defined benefit retirement plans
  • Defined contribution retirement plans
  • Chart: Global Pension Funds Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Mutual funds
  • Equities
  • Bonds
  • Other investments
  • Cash and deposits
  • Unallocated insurance contracts
  • Land and buildings
  • Loans
  • Chart: Major Market Segmentation for the Global Pension Funds Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Global Pension Funds

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Global Pension Funds Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Global Pension Funds Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Global Pension Funds Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Total Assets (2009-2023)
  • Global number of adults aged 65 and older (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Defined Benefit (Db) Plan
  • An occupational retirement plan where benefits are determined by members' salary and tenure. The plan sponsor (i.e. employer) bears the risk of investment returns and longevity.
  • Defined Contribution (Dc) Plan
  • A retirement plan where members transfer a portion of their salary into a retirement account. The size of benefits depends on the value of accumulated assets and is not defined.
  • Pension Fund Service Provider
  • An entity that provides investment management, financial advisory, asset consultancy, custodial management or middle-office support services to pension funds.
  • Pension Plan Sponsor
  • The entity that funds pension plan benefits. For an occupational pension plan, the plan sponsor is the member's employer.
  • What Our Customers Say

    Why buy this report?

    The global economy presents its own set of opportunities and threats for businesses in a range of industries. IBISWorld’s Global Pension Funds global market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies globally and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Global Pension Funds:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Global Pension Funds market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Global Pension Funds, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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