Global pension assets reached a record US$68.3 trillion in 2025, rising 9.6 per cent year over year, with defined contribution savings continuing to drive growth, according to WTW’s latest global pension assets study.
The report credited the creation of $6 trillion of pension asset value to a year of sustained recovery across global markets with “strong investor sentiment and relatively contained volatility.”
Of the top seven global pension markets — Australia, Canada, Japan, Netherlands, Switzerland, U.K. and the U.S. — DC plans now form 63 per cent of all assets, with Australia (90 per cent) and the U.S. (72 per cent) strongly skewing towards DC asset allocation, followed closely by Canada (44 per cent).
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Over the past 10 years, the three predominantly DC markets have seen above average growth, as the U.S. grew by 7.7 per cent, followed by Australia (6.6 per cent) and Canada (5.3 per cent). Looking at other countries in the wider list, Hong Kong, South Korea and Switzerland all grew by more than eight per cent over the last decade, according to the study.
While the U.S. remains the largest single pension market, forming 66 per cent of the top 22 globally, Canada has now overtaken Japan for the first time to become the second largest pension market, thanks to 12 per cent year-over-year growth.
Looking at the seven largest pension markets over the last 20 years, the study found overall allocation to equities has fallen nine percentage points to 48 per cent of total assets, while bonds and other asset classes are up three percentage points and six percentage points, respectively, to 31 per cent and 19 per cent of total assets.
“2025 saw broad-based gains across global markets, with most major asset classes delivering positive returns,” said Jessica Gao, director of WTW’s Thinking Ahead Institute, in a press release. “Equities performed especially well, while fixed income also posted gains in light of global rate cuts and narrowing credit spreads.
“Looking ahead, the 2026 outlook is likely to be shaped by policy decisions, technological innovation and shifting global dynamics. Fiscal support and [artificial intelligence]-related investment should remain important growth drivers. Inflation trends and central bank actions will be key, particularly in the U.S., where strong capital spending and supportive fiscal policy may continue to support growth and keep yields relatively elevated.”