MELBOURNE, February 12, 2026 – Rising by 9.6% year-on-year, global pensions assets reached a record USD 68.3 trillion in 2025 as defined contribution (DC) savings continued to drive growth, according to the Thinking Ahead Institute’s (TAI) latest Global Pension Assets Study.
2025 showed sustained recovery across global markets with strong investor sentiment and relatively contained volatility, culminating in the creation of USD 6.0 trillion of pension asset value.
Of the top seven global pensions markets – Australia, Canada, Japan, Netherlands, Switzerland, UK, US – DC now forms 63% of all assets, with Australia and the US strongly skewing towards DC asset allocation at 90% and 72% respectively, followed closely by Canada at 44%.
Over the past 10 years, the three predominantly DC markets have seen above average growth, as Australia grew by 6.6% pa, the US by 7.7% pa, and Canada by 5.3% pa. Looking at other countries in the wider Top 22 pensions markets, South Korea, Switzerland and Hong Kong all grew by more than 8% pa over the past decade.
The US remains the largest single pensions market, now forming 66% of the Top 22 globally. Canada has now overtaken Japan for the first time to become the second largest pensions market, due to strong 12% year-on-year growth.
Nevertheless, Asia Pacific (APAC) is a key anchor of the global pensions landscape. Japan remains a heavyweight and Australia demonstrates the power of high contributions and compounding, with both markets in the global top five. South Korea ranks eighth while China has reached ninth place as coverage expands. India (11th), Malaysia (13th) and Hong Kong (16th) make up the remaining markets from APAC in the study.
Looking at the seven largest pensions markets, over the last 20 years, overall allocation to equities has fallen nine percentage points (pp) to 48% of total assets, while bonds and other asset classes are up 3pp and 6pp respectively to 31% and 19% of total assets. Aggregate asset allocation now more closely resembles that of 15 years ago.
Jessica Gao, director at the Thinking Ahead Institute said: “2025 saw broad-based gains across global markets, with most major asset classes delivering positive returns. 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 AI-related investment should remain important growth drivers. Inflation trends and central bank actions will be key, particularly in the US, where strong capital spending and supportive fiscal policy may continue to support growth and keep yields relatively elevated.
“The 2026 outlook is likely to be shaped by policy decisions, technological innovation and shifting global dynamics. Fiscal support and AI-related investment should remain important growth drivers.”
Jessica Gao | Director, Thinking Ahead Institute
“Now more than ever, adopting a ‘Total Portfolio Approach’ matters because the investment environment is more uncertain, complex and interdependent than the governance models that many funds have relied on. Rapid technological change as well as more prominent political and systemic risks demand frameworks that can operate with less certainty and weaker model stability. TPA addresses this by enabling faster, more coordinated decisions supported by better data, technology and an organisation-wide perspective.”
The Thinking Ahead Institute is a global not-for-profit investment research and innovation network dedicated to helping investors navigate the future. Bringing together leading asset owners, asset managers and strategic partners, the Institute drives innovation through collaborative research and practical solutions. Since its founding in 2015, the Institute has convened more than 100 organizations to collaboratively design fit-for-purpose investment strategies, improve organizational effectiveness, and strengthen stakeholder trust.
Learn more about how the Thinking Ahead Institute can support your organization at Thinking Ahead Institute.
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