Global pension assets rise by nearly 10%, reaching new high

Core Insights - Global pension assets reached a record USD 68.3 trillion in 2025, marking a year-on-year increase of 9.6% driven by defined contribution (DC) savings [1] - The US remains the largest pensions market, accounting for 66% of the Top 22 globally, while Canada has overtaken Japan to become the second largest pensions market with a 12% year-on-year growth [4] - The UK pension market has experienced weak growth of only 1.4% per annum over the last decade, resulting in a drop from the second largest to the fourth largest pensions market [5] Global Market Performance - In 2025, global markets showed sustained recovery with strong investor sentiment, leading to the creation of USD 6.0 trillion in pension asset value [2] - The allocation to equities in the seven largest pensions markets has decreased by nine percentage points to 48% of total assets, while bonds and other asset classes have increased [7] - Most major asset classes delivered positive returns in 2025, with equities performing particularly well [8] Market Trends and Future Outlook - The UK pension market is undergoing a structural shift, with defined benefit (DB) schemes maturing and de-risking, while DC schemes are expanding, now representing around 40% of UK pension assets [6] - Looking ahead, the 2026 outlook will be influenced by policy decisions, technological innovation, and global dynamics, with fiscal support and AI-related investments expected to drive growth [9] - The adoption of a 'Total Portfolio Approach' is becoming increasingly important due to the uncertain and complex investment environment [10]