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) remained the largest pension fund in the world, with AUM of US$ 1.59 trillion, a position it has held since 2002.
The Government Pension Investment Fund of Japan (GPIF) remained the largest pension fund in the world, with AUM of US$ 1.59 trillion, a position it has held since 2002.
With an index value of 85.0, the Netherlands received the highest score for 2023. Its retirement income system uses a flat-rate public pension and a semi-mandatory occupational pension linked to earnings and industrial agreements.
China's premier government think tank, the Chinese Academy of Social Sciences, estimates that the basic pension fund for urban employees will be depleted by 2035. China's pension system — the world's largest by total enrollees, while Japan's ranks No. 1 by assets — was once a robust government-only program.
Norway is rated one of the top overall countries to retire to, due to its excellent healthcare, strong economy, beautiful scenery, and focus on work-life balance. Financial security, healthcare system, and lifestyle are the most common factors to consider when choosing a retirement country.
What are some of the most affordable countries to retire in? Portugal, Malaysia, Mexico, Costa Rica, Ecuador, Panama, Thailand, Spain, Vietnam, and Colombia are some of the most affordable countries to retire in, providing a high quality of life at a fraction of the cost of many Western countries.
Civil Service. At the top of the list is the Civil Service, where the Government will contribute between 26pc and 30pc of its staff salary into a “defined benefit” pension scheme. These types of pensions are highly sought after, as they guarantee an income in retirement that often comes with an inflation link.
There are pros and cons to both plans, but pensions are generally considered better than 401(k)s because they guarantee an income for life. A 401(k) can be more aggressively managed by the individual, which could create more growth than is likely from a pension fund.
Japan's Government Pension Investment Fund (GPIF) was the largest public pension fund worldwide as of 2024. The fund, which was established in 2006 had assets under management worth 1.62 trillion U.S. dollars.
Four decades ago, Forbes called the Central States Pension Fund “the most abused, misused pension fund in America.” It's easy to see why. Throughout the 1950s and '60s, it was a personal slush fund for Teamsters boss Jimmy Hoffa and his pals.
In 2022, the asset value of Chinese pension funds amounted to 242 billion U.S. dollars. Compared to other financial institutions in the country, pension funds made up a relatively small portion. For instance, other financial intermediaries (OFI) held assets valued at over 14 trillion U.S. dollars.
The relative importance of expenditure on pensions varied considerably between the EU Member States. In 2021, this ratio peaked in Greece at 16.4 % of GDP, followed by Italy (16.3 %).
Greece is among the countries with the highest retirement age in the world: 67 for men and women. Workers can claim full pension benefits only if they have contributed to the pension plan for at least 15 years (equivalent to 4,500 working days). Denmark, Iceland, Israel, and Italy also have retirement ages of 67.
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