Understanding trends in global pension fund assets

Firstly, global pension assets experienced a 17% decrease in asset value at the end of 2022. The largest drop since the global financial crisis. Pension funds are expected to face the possibility of lower-for-longer returns in the coming economic cycle, which has raised solvency concerns. But there is also a silver lining. We are seeing the best annuity rates in recent years.

Secondly, is the continuing shift to DC plans globally. Over the past 10 years, DC plans have been accumulating at a much faster rate compared with DB. As we swing fast to DC, it brings a few questions. How do we balance affordable and secure? How to make pension provisions more sustainable? And ultimately, what should the future of pension look like?

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