Global pension assets soared by 4.9% in 2024, hitting a record $58.5 trillion, up from $55.7 trillion in 2023, according to the latest Global Pension Assets Study by the Thinking Ahead Institute. The surge was largely driven by growth in defined contribution (DC) pension markets, particularly in the US and Australia.
Together, the US, Australia, Japan, Canada, and the UK account for 82% of the world’s pension assets, with the US continuing to dominate the global market, holding 65% of the total. Among the seven largest pension markets—including the Netherlands and Switzerland—DC schemes now represent 59% of assets, up from 40% in 2004. DC assets have grown annually at a rate of 6.7% since 2014, far surpassing the 2.1% growth in defined benefit (DB) pension assets.
Australia’s pension assets have shown remarkable growth, increasing by 110% in local currency since 2014, compared to a 75% rise in the US. DC schemes dominate both markets, accounting for 89% of Australia’s pension assets and 69% in the US. If Australia maintains its growth trajectory, it could surpass Japan to become the second-largest pension market globally by 2030.
However, the UK recorded a slight decline in pension assets in 2024, with a 0.7% drop in local currency. Over the past decade, the UK’s share of global pension assets has decreased from 8.8% to 5.4%, reflecting a continued reliance on DB pensions, which made up 73% of UK pension assets in 2023. Additionally, the UK has the highest bond allocation among major pension markets at 56%, followed closely by Japan at 55%.
Jessica Gao, Director at the Thinking Ahead Institute, noted that DC markets are driving global pension growth, increasing regulatory oversight on pension funds, particularly in Canada, Australia, and the UK.
Australia’s pension system has seen explosive growth over the past two decades, with superannuation assets increasing by nearly 500%, driven by a rising superannuation guarantee and strong preference for DC schemes. Despite the depreciation of the Australian dollar in 2024 tempering the growth in USD terms, the country’s pension assets continue to grow steadily.
Australian pension funds have also been diversifying their portfolios. Since 2019, the allocation to equities has risen from 47% to 52%, while alternative investments have increased slightly from 23% to 24%.
The Thinking Ahead Institute’s study covers 22 major pension markets, with the seven largest accounting for 91% of global pension assets.
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