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...read more.

Industry Statistics & Market Size
Revenue
$3tr
Annual Growth 12-17
6.7%
Forecast Growth 17-22
Profit
Employment
228,409
Businesses
268,010
Market Share of Companies

Industry Threats & Opportunities

  • The aging population and growing household wealth are supporting a recovery
  • The aging population is putting immense pressure on governments to provide for retired individuals
  • With the government unable to accommodate the influx of retired individuals, privatization will increase
  • Industry Report - Industry Locations Chapter

    The geographical distribution of the Global Pension Funds industry represents the distribution of pension fund assets around the world.North AmericaThe North American region dominates the Global Pension Funds industry, being home to two of the six largest pension fund markets in the world: the United States and Canada. North America's share of contributions is lower than assets because the region's large asset base enables it to benefit significantly from investment compounding. However, with the baby boomer generation entering retirement, employer contributions will need to ensure solvency and meet future obligations.EuropeIn the past, Europe has not been a big region for private pension funds. Thi...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
  • Public defined benefit retirement plans
  • Private defined benefit 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 define 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
  • Public defined benefit retirement plans
  • Private defined benefit retirement plans
  • Chart: Global Pension Funds Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Equities
  • Bonds
  • Alternatives
  • Cash
  • 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
  • Benefit payments
  • 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
    Government Pension Investment Fund, Japan,
  • Table: Government Pension Investment Fund, Japan - financial performance

  • 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 (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Global number of adults aged 65 and older (2008-2022)

  • 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 offers insightful industry analysis and research into the market at an international level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
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    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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