Pension assets hit $58.5t, up 4.9% in 2024

Australia eyes second-largest pension market spot by 2030.

Global pension assets rose 4.9% in 2024, reaching a record $58.5t, up from $55.7t in 2023, according to the Thinking Ahead Institute’s latest Global Pension Assets Study. 

Growth was driven by defined contribution (DC) markets, particularly in the US and Australia.  

Combined with Japan, Canada, and the UK, these four markets account for 82% of total pension assets. The US remains the dominant pensions market, holding 65% of global assets. 

Across the seven largest pension markets—Australia, Canada, Japan, Netherlands, Switzerland, the UK, and the US—DC now makes up 59% of total assets, compared to 40% in 2004. 

DC assets have grown 6.7% annually since 2014, outpacing the 2.1% growth of defined benefit (DB) assets.  

Australia’s pension assets have grown 110% in local currency since 2014, compared to 75% in the US DC schemes dominate in both markets, making up 89% of Australian assets and 69% of US assets. 

If Australia maintains its growth trajectory, it could become the world’s second-largest pension market by 2030.  

The UK was the only major pension market to record negative growth in 2024, declining 0.7% in local currency. 

Over the past decade, its share of global pension assets fell from 8.8% to 5.4%, reflecting its reliance on DB pensions, which accounted for 73% of UK assets in 2023. 

The UK also has the highest bond allocation amongst top pension markets at 56%, followed by Japan at 55%.  

Jessica Gao, Director at the Thinking Ahead Institute, said DC markets are driving global pension growth, leading to increased regulatory influence on pension funds, particularly in Canada, Australia, and the UK.  

Australia’s superannuation assets have surged nearly 500% over the past two decades, supported by a rising superannuation guarantee and a preference for DC schemes. 

Despite the Australian dollar’s depreciation tempering 2024’s USD-denominated growth, the country’s pension assets continue to expand. 

Since 2019, Australian pension funds have increased their equities allocation from 47% to 52%, whilst alternatives rose slightly from 23% to 24%.  

The study covers 22 major pension markets, with the seven largest accounting for 91% of total global assets.