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Top pension funds reach all-time global record

1. Global pension funds reached a record US$ 24.4 trillion in assets. 2. Top 20 pension funds account for 42.4% of total assets. 3. Funds are focusing on AI for portfolio management. 4. DB schemes fell below 60% share of total assets. 5. Pension funds face challenges from volatility and inflation.

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Why Bullish?

The record growth in pension assets indicates increased demand for WTW’s advisory services. Historical trends show that robust pension performance can lead to higher consulting revenues for asset managers like WTW.

How important is it?

The article highlights major trends and challenges in the pension industry that directly relate to WTW's operations. Enhanced focus on technology and governance aligns with WTW's strategic interests, impacting its service offerings positively.

Why Long Term?

Sustained growth in pension fund assets reflects ongoing market stabilization, benefiting WTW over time. As funds adopt innovative strategies like AI and Total Portfolio Approach, WTW is positioned to support these transformations.

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September 08, 2025 11:01 ET  | Source: Willis Towers Watson US LLC NEW YORK, Sept. 08, 2025 (GLOBE NEWSWIRE) -- The world’s largest 300 pension funds reached a new US$ 24.4 trillion record in terms of their total assets under management, according to this year’s Global Top 300 Pension Funds report by leading global advisory, broking and solutions company, WTW’s Thinking Ahead Institute. The research highlights high-level trends in the pension fund industry and provides information on the changing composition of the top 300 list of pension funds globally, including the characteristics and investment allocations of these pension funds. This year’s total breaks the record that was previously set in 2021 at US$ 23.6 trillion before a market correction in 2022. However, as the recent recovery reached record territory, growth slowed slightly, up 7.8% in 2024, compared to 10% growth the previous year. Concentration also continues. For the first time, the combined assets of the world’s top 20 pension funds exceeded US$ 10 trillion, increasing by 8.5% from the previous year to reach US$ 10.3 trillion. These top 20 funds increased at a faster pace than the top 300 pension funds and now account for 42.4% of the top 300 as a whole by assets. Of these top funds, ten reported strengthening their expertise in artificial intelligence, with nine highlighting technology adoption in portfolio management as a strategic priority and recognising AI as both a risk and an opportunity. At the same time, nine pension funds cited volatility and uncertainty as major concerns, with inflation also highlighted as a key factor shaping the outlook for the year. At the very top of the table, Japan’s Government Pension Investment Fund (GPIF) was overtaken by Norway’s Government Pension Fund after more than 20 years at the top. Norway’s Government Pension Fund boasts US$ 1.77 trillion in total assets and is 6.9% larger by assets than the former global frontrunner. The Government Pension Fund of Norway is a sovereign wealth fund with a mandate to preserve and grow national savings to help finance future pension expenditures and ensure intergenerational financial security. Jessica Gao, director at the Thinking Ahead Institute, reflects on key insights from the research: “The past year saw pension assets reach their highest levels yet, coming off several years of slowed growth following the previous record achieved in 2021. “The world’s largest pension funds are navigating an increasingly complex landscape. Macroeconomic volatility, geopolitical shifts and concentrated market risks are reshaping return expectations. The current backdrop has tested even well-diversified portfolios, highlighting the difficulty of today’s investment environment. At the same time, funds face more demanding relationships with stakeholders, from regulators to sponsors to members, all of whom are raising expectations on how pensions are managed. These intersecting challenges are heightening the responsibilities of fiduciaries, making strong governance more important than ever.” While DB schemes remain the largest share of disclosed assets, the proportion fell below 60% in 2024, now accounting for 59.4% of total assets. DC fund assets, alternatively, grew at a faster pace in 2024, increasing by 14.3% and formed 27.7% by share of assets. DB funds accounted for a majority share of assets in North America (69%), Asia-Pacific (62%) and Europe (43%) in 2024, while DC plans dominate other regions (64%), particularly in Latin America. Defined contribution funds continue to grow, yet the challenge of turning savings into secure lifetime income remains. Many funds are exploring new pathways, but stability, adequacy and affordability are difficult to balance across different regulatory and social contexts. Technology is another defining force. Many funds are raising budgets for digital solutions to strengthen oversight, risk management and long-term decision-making. AI in particular is emerging as a powerful enabler and a new source of risk that requires careful governance and strong controls. “With growing complexity and challenges, more funds are exploring the Total Portfolio Approach (TPA). By aligning purpose, capital and decision-making, and by taking a holistic view of the fund as a whole, TPA is helping organizations strengthen their ability to deliver long-term outcomes,” concluded Gao. Top 20 pension funds (US$ millions) RankFundMarketTotal Assets1Government Pension FundNorway$1,767,9512Government Pension Investment FundJapan$1,645,5503Federal Retirement ThriftU.S.$954,2554National PensionSouth Korea$820,7995ABPNetherlands$560,0566California Public EmployeesU.S.$541,9657Canada PensionCanada$496,9358Central Provident FundSingapore$446,2489National Social SecurityChina$366,74710California State TeachersU.S.$354,17011New York City RetirementU.S.$285,52212Employees Provident FundMalaysia$279,43513New York State CommonU.S.$274,68214PFZWNetherlands$267,71415Local Government OfficialsJapan$232,58716Florida State BoardU.S.$223,48017AustralianSuperAustralia$212,37618Texas TeachersU.S.$211,61119Employees' ProvidentIndia$199,44720Labor Pension FundTaiwan$197,205 About the Thinking Ahead InstituteThe Thinking Ahead Institute was established in January 2015 and is a global not-for-profit investment research and innovation member group made up of engaged institutional asset owners and asset managers committed to mobilizing capital for a sustainable future. It has 52 members around the world and is an outgrowth of the WTW Investments’ Thinking Ahead Group which was set up in 2002. Learn more at https://www.thinkingaheadinstitute.org/ About WTW At WTW (NASDAQ: WTW), we provide data-driven, insight-led solutions in the areas of people, risk and capital. Leveraging the global view and local expertise of our colleagues serving 140 countries and markets, we help organizations sharpen their strategy, enhance organizational resilience, motivate their workforce and maximize performance. Working shoulder to shoulder with our clients, we uncover opportunities for sustainable success—and provide perspective that moves you. Learn more at wtwco.com Media contacts Stacy Bronsteinsbronstein@meritcomms.com Ileana FeoliIleana.feoli@wtwco.com  

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