Compared to all pension funds of any size, the 300 largest pension funds in the world now represent 43% of global pension assets (up from 41.1% in 2021), according to the annual Global Pension Assets Study by the Thinking Ahead Institute, which estimates the assets of global pension funds in the 22 main pension markets.
The 300 largest pension funds in the world have seen a drop in their assets for the first time since 2018. This decline is on par with the one observed in 2008, occurring at a rate that has only happened twice in the twenty-year history of this annual study. By the end of 2022, the combined assets of the 300 largest pension funds in the world decreased by 12.9%, reaching a total of 20.6 trillion dollars compared to the 23.6 trillion at the end of 2021. This represents a sharp correction compared to the 8.9% increase in assets managed by the 300 largest pension funds in the previous year. The latest drop is also faster than the 12.6% annual drop recorded in 2008, at a time of global financial crisis. Until now, this had been the fastest annual decline recorded in the 20 years of the study.
The Government Pension Investment Fund of Japan (GPIF) remains the largest pension fund, and tops the table with assets of 1.4 trillion dollars. It has held the top spot since 2002. Meanwhile, the Employees' Provident Fund of India joins as the only new participant among the top 20 funds of 2022.
Top 20 largest pension funds in the world (US$ millions)
Rank
Pension Fund
Market
Total Assets
1
Government Pension Investment
Japón
1.448,643
2
Government Pension Fund
Noruega
1.300,214
3
National Pension
Corea del Sur
706,496
4
Federal Retirement Thrift
Estados Unidos
689,858
5
ABP
Países Bajos
490,382
6
California Public Employees
Estados Unidos
432,235
7
Canada Pension
Canadá
420,764
8
Central Provident Fund
Singapur
406,711
9
National Social Security
China
347,214
10
California State Teachers
Estados Unidos
231,781
11
New York State Common
Estados Unidos
233,227
12
PFZW
Países Bajos
231,781
13
New York City Retirement
Estados Unidos
228,170
14
Employees Provident Fund
Malasia
227,781
15
Local Government Officials
Japón
207,145
16
Florida State Board
Estados Unidos
183,092
17
Ontario Teachers
Canadá
182,410
18
AustralianSuper
Australia
176,446
19
Texas Teachers
Estados Unidos
173,277
20
Employees’ Provident
India
158,722
The United Kingdom and Japan recorded the highest number of pension fund falls among the world's top 300. The crisis of the British "gilts" in September 2022 and the subsequent market instability were significant factors, as was the growing shift from defined benefit plans to smaller defined contribution plans.
In 2022, sovereign and public sector pension funds accounted for 152 of the top 300, representing 70.9% of total assets. Sovereign pension funds amounted to 6.2 trillion dollars in assets, while sovereign investment or "Wealth funds" (SWF) totaled 11.6 trillion dollars. The assets of sovereign investment funds grew by 13.9% during 2022, compared to the decline of 10.6% of the sovereign pension funds included in the Top 300 study of the Thinking Ahead Institute.
North America currently represents 45.6% of the assets of the world's 300 largest pension funds, while European pension funds represent 24.1% and those of Asia-Pacific 26.4%.
As for the largest ones, the assets of the 20 largest pension funds decreased by 11.8% in the last year, a slight improvement compared to the 12.9% drop observed in the set of the 300 largest funds. The 20 largest funds represented 41.5% of the assets under management (AUM) of the ranking, slightly above the 2021 share, which was 41%.
This is a story of two halves. On the one hand, a new record for the world’s major pension funds illustrates the optimism that defied a global pandemic. Yet on the other, growth is slowing and the long-term dashboard is flashing amber. Looking ahead, rising inflation and subsequent central bank action are likely to cause global growth to falter, which may in turn endanger longer term the funding status of pension funds.Pension funds are also under immense governance pressure from all sides, with a growing politicisation of ESG in some regions meeting calls for more substantial and urgent climate action. The addition of stark short-term economic pressures alongside these structural long-term changes will only add to the difficulty of balancing short-term financial resilience with long-term financial and climate sustainability.
Marisa Hall, co-head of the Thinking Ahead Institute
The Government Pension Investment Fund of Japan (GPIF) remains the largest pension fund, and tops the table with assets of 1.4 trillion dollars. It has held the top spot since 2002. Meanwhile, the Employees' Provident Fund of India joins as the only new participant among the top 20 funds of 2022.
The Netherlands is top of the class when it comes to comparing pension systems around the world, according to a recent global pensions report from the Mercer CFA Institute. The ranking looked at more than 50 indicators and compared 47 retirement income systems, covering 64% of the world's population.
Data are shown for individual pension funds and systems as well as at the national, state, and local level. There were 304 state-administered funds and 4,632 locally-administered defined benefit public pension systems, all of which are represented here.
As of the fourth quarter of 2023 (December 31st), aggregate public pension assets were $5.99 trillion, an increase of 7.9 percent from the $5.56 trillion reported for the prior quarter. This value is higher than the same quarter one year ago by some $438 billion, or 10.5 percent.
In a bold step tailored to meet the existential challenges and colossal financial risks of a warming climate and harness the massive opportunities of the shift to a new clean economy, California Public Employees' Retirement System, the largest public pension fund in the U.S. managing $446 billion, announced plans to ...
Pensions are tied to specific employers that can go bankrupt. Social Security is a government-backed program that may have less of a risk of default. Social Security amounts automatically adjust for the cost of living and/or inflation, while pension plans have to deliberately increase future benefits.
Although the Netherlands, Austria, Luxembourg and Denmark are overall the best performers on social security, it does not mean that they are in the top four on each indicator. As for poverty issues, Luxembourg performs well, with just 5% of the population living below the poverty line in 2011 (Figure 1).
A pension plan can be better for those who are interested in securing a fixed, stable income throughout their retirement. There is also less risk involved as it is overseen by your company. Investors who want more control over their retirement plan, plus the tax breaks, might prefer a 401(k).
Can you collect Social Security and a pension at the same time? You can retire with Social Security and a pension at the same time, but the Social Security Administration (SSA) might reduce your Social Security benefit if your pension is from a job at which you did not pay Social Security taxes on your wages.
The average retirement income for U.S. adults 65 and older is $75,020. The median income for that age group is $50,290, according to data from the Census Bureau and Bureau of Labor Statistics. On a monthly basis, the average income for U.S. adults 65 and older is $6,252. The median monthly income is $4,191.
Traditional pension plans have been on the decline, primarily due to the economic strain they place on companies. Employers often bear the heavy responsibility of fully funding these plans; a task made more challenging by unpredictable market volatility and fluctuating investment returns.
I estimate that you'd be offered $470,000 for a $3,000 monthly pension that is about to start at age 65. (I can only estimate because plans vary in how quickly they adopt interest rate updates.) If you are a 65-year-old nonsmoking female, the pension is worth more like $626,000.
Pension funds are typically managed by companies (employers). The main goal of a pension fund is to ensure there will be enough money to cover the pensions of employees after their retirement in the future.
CalSTRS, the California State Teachers' Retirement System, is the largest teachers' retirement system and second largest public pension fund in the nation.
CalSTRS is the nation's second largest public pension fund with assets totaling approximately $331.4 billion as of February 29, 2024. The investment portfolio is broadly diversified into seven asset categories.
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