Global pension asset surge near US$70t on 2025 gain
A 9.6% year-on-year increase has seen global pensions assets surge to a record US$ 68.3 trillion in 2025 as defined contribution (DC) savings continues to power growth, according to the Thinking Ahead Institute’s (TAI) latest Global Pension Assets Study.
The report stated “2025 showed sustained recovery across global markets with strong investor sentiment and relatively contained volatility, culminating in the creation of USD 6.0 trillion of pension asset value.”
Director at the Thinking Ahead Institute Jessica Gao said 2025 saw broad-based gains across global markets, with most major asset classes delivering positive returns.
“Equities performed especially well, while fixed income also posted gains in light of global rate cuts and narrowing credit spreads,” Gao said.
Looking ahead, she said the 2026 outlook is likely to be shaped by policy decisions, technological innovation and shifting global dynamics.
“Fiscal support and AI-related investment should remain important growth drivers,” Gao said.
“Inflation trends and central bank actions will be key, particularly in the US, where strong capital spending and supportive fiscal policy may continue to support growth and keep yields relatively elevated.”
While the overall allocation to equities has fallen by 9% over the last 20 years in seven largest pension markets, the study found bonds and other asset classes to have increased by 3% and 6% respectively to reach 31% and 19% of total assets.
Furthermore, the US continues to be the largest single pensions market holding 66% of the top 22 markets globally whereas Canada has overtaken Japan for the first time to become the second largest pensions market, due to strong 12% year-on-year growth.
However, the report stated Asia Pacific (APAC) region to be a key anchor as Japan remains a heavyweight and Australia demonstrates the power of high contributions and compounding, with both markets in the global top five.
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