Broken bonds: The industry has contracted slightly due to disappointing investment returns and competition from alternative retirement plans

The Retirement and Pension Plans industry has experienced significant growth over the five years to 2018, as strong gains in equity markets and gains in disposable income have boosted industry revenue. Further, strength in the general economy over the five years to 2018, has enabled greater employee and employer contributions to pension funds. Dwindling popularity for DB plans will cause industry revenue to decelerate over the five years to 2023. Despite the increasing popularity of DC plans, IBISWorld projects growth in investment income and contributions for DB pension funds. This projected growth in investment income is largely due to projected annualized growth of 5.9% in the S&P 500 over the next five years...purchase to read more.

Industry Statistics & Market Size
Revenue
$976bn
Annual Growth 13-18
-1.3%
Forecast Growth 18-23
Profit
Employment
18,703
Businesses
54,333
Market Share of Companies

Industry Threats & Opportunities

  • Reduced costs and lower investment risk have contributed to the rising popularity of DC plans
  • The PPA forces employers to strengthen their pension plans to meet future obligations
  • Employers will shift away from DB plans to reduce their contribution liabilities
  • Industry Report - Starting a New Business Chapter

    The US Retirement and Pension Plan industry has moderate barriers to entry, despite a low level of concentration, due to significant regulatory requirements and competition from DC plans and other investment and savings vehicles, including life insurance policies, annuities, hedge funds and mutual funds.Regulatory requirementsGiven the social importance of retirement savings, there are several regulations that affect the Retirement and Pension Plans industry. One key theme is the duty of care that must be undertaken by those involved (fiduciaries) in executing control over fund assets. Some of the rules that apply include the Prudent Man Rule and the Diversification Requirement, which seek to minimize risks and protect assets. ...purchase to read more.

    Additional Insights for the Retirement & Pension Plans Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Retirement & Pension Plans Industry are

  • Ability to produce consistent investment returns
  • Company profitability
  • Ability to maintain adequate asset reserves
  • IBISWorld analysts also discuss how external factors such as S&P 500 and Yield on 10-year Treasury note in the Retirement & Pension Plans industry impact industry performance..

    shopping_cartPURCHASE OPTIONS

    What's in this report

    What is the Retirement & Pension Plans Industry?

    This industry is composed of private and public pension funds that provide retirement saving and income benefits exclusively for the sponsor’s employees or members. This industry only includes defined benefit plans and excludes defined contribution plans. Revenue in this industry refers to total contributions plus investment gains, while establishments refer to the number of funds. Fees from portfolio management or other third-party services are not included in this report.

    Industry Products
  • Private defined benefit plans
  • State and local government defined benefit plans
  • Federal defined benefit 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
  • S&P 500
  • Yield on 10-year Treasury note
  • National unemployment rate
  • Number of adults aged 65 and older

  • Current Performance
  • Focusing on underfunded plans
  • Transitioning from DB to DC
  • Chart: Revenue Growth

  • Industry Outlook
  • DC plans and IRAs are the future
  • Underfunded plans remain top priority
  • Table: Retirement & Pension Plans Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Retirement & Pension Plans Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Accounting Services
  • Law Firms
  • Life Insurance & Annuities
  • Open-End Investment Funds
  • Portfolio Management

  • Products & Services
  • State and local government defined benefit plans
  • Private defined benefit plans
  • Federal defined benefit plans
  • Chart: Retirement & Pension Plans Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • State and local government employees
  • Private sector employees
  • Federal government employees
  • Chart: Major Market Segmentation for the Retirement & Pension Plans Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Retirement & Pension Plans

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Retirement & Pension Plans Industry

  • Industry Globalization
    California Public Employees' Retirement System,
  • Table: California Public Employees' Retirement System - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Retirement & Pension Plans 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 Retirement & Pension Plans Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • S&P 500 (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Defined Benefit (Db) Plan
  • Company retirement plan (i.e. pension plan) in which a retired employee receives a specified amount of base salary depending on employment history. The employer bears all investment risk.
  • Defined Contribution (Dc) Plan
  • Company retirement plan in which the employee elects to defer a specified amount of salary into a retirement account. Income depends on the size of the investment and is not defined.
  • Individual Retirement Account (Ira)
  • Tax-deferred retirement account that allows individuals to set aside money on an annual basis. Taxes on earnings are deferred until withdrawal. This type of account is not employer-sponsored.
  • Pension Fund
  • Also known as pension fund sponsor. Refers to the actual fund. Funds are generally organized and "sponsored" by companies, government entities or labor unions.
  • Roth Ira
  • Individual retirement account (IRA) that differs from traditional IRAs in that contributions are not tax-deferrable.
  • Tax Qualified Plan
  • Retirement plan that is eligible for favorable tax treatment because it meets the requirements of the Internal Revenue Code Section 401(a) and the Employee Retirement Income Security Act of 1974.
  • What Our Customers Say

    Why buy this report?

    The Retirement & Pension Plans industry market report contains strategic analysis of the key drivers influencing the industry. Save hours of time on research and prospecting using IBISWorld’s standardized, up-to-date reports on thousands of industries. Our industry research provides growth and profit forecasts for a five-year outlook period, presented in a clear and user-friendly format.

    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 Retirement & Pension Plans:
    • 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 Retirement & Pension Plans 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 Retirement & Pension Plans, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

    Contact Us

    Want to speak to a representative? Call us.

    clear