Top pension funds grow at fastest rate since 2017

MELBOURNE, September 7, 2026 – The world’s top 300 pension funds grew total assets under management (AUM) by 13.4% in 2025, the fastest annual growth since 2017, to a record US$ 27.7 trillion. This is according to the Global Top 300 Pension Funds report by the Thinking Ahead Institute, in conjunction with Pensions & Investments, a leading U.S. investment publication.

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.

Growth was particularly strong among the largest funds. The top 20 largest funds increased their assets by 14.7%, taking their total assets to $11.9 trillion.

North America remains the largest region, accounting for 44.7% of the top 300 assets, although its share fell from 47.2% a year earlier. Over the five years to 2025, it nevertheless recorded the strongest annualised growth among the major regions at 6.4%.

Meanwhile, the Asia Pacific region grew its share of assets among the top 300 from 25.5% to 26.6% year-on-year. Funds in the region allocated 51.4% to equities, the highest portion among the major regions, alongside 36.4% to bonds and 10.5% to alternatives.

Likewise, Europe expanded its share of the top 300 assets in 2025 to 24.6% compared to 23.7% in the previous year. Europe’s growth has been significantly bolstered by the Government Pension Fund of Norway, which crossed the US$ 2 trillion milestone for the first time. It overtook the Government Pension Investment Fund of Japan in 2024 as the world’s biggest pension fund and has strengthened that lead even further, being 12.7% bigger than its closest peer.

The UK and Netherlands were the only markets to record negative asset growth over the last five years in both local currency and US dollar terms. While they remain Europe's two largest pension markets, both are characterised by mature pension systems with a significant defined benefit legacy.

This reflects the broader transition across many developed markets, where established pension systems are increasingly balancing growth with benefit payments, de-risking activity, and changing scheme structures. Europe continues to have the lowest proportion of defined contribution (DC) assets at 13.2%, compared with 30.7% in Asia Pacific and 31.6% in North America.

Jonathan Grigg, Senior Director, Investments at WTW says: “Australia’s share of the assets under management of the top 300 funds rose from 4.8% to 5.2% through a combination of strong returns, continued merger activity and the strengthening of the Australian dollar.

“The number of Australian funds included in the top 300 rose from 16 to 17, with CareSuper entering the top 300 following the merger with Spirit Super on 1 November 2024. All Australian funds included rose in the rankings, with the exception of State Super, which primarily manages defined benefit assets and has a very different cash flow profile to most Australian funds which are primarily defined contribution. Notable movers include Australian Retirement Trust, which was the only new addition to the top 20 funds in the survey, as well as REST and HESTA which both moved into the top 100.^[1]

“While DC assets globally grew significantly faster than Defined Benefits (DB) assets, this has increased the focus on how DC funds can support their members in retirement. This has been a key area of discussion in Australia over the past year, with both the Australian Government and individual funds increasingly focused on delivering better outcomes for members in the Retirement phase.”

Reflecting on key insights from the research, Jessica Gao, director at the Thinking Ahead Institute, adds: “Scale and consolidation are among the defining industry themes of the moment. Not only are the largest funds getting larger, but organisations are also increasingly pursuing growth beyond traditional M&A through strategic partnerships, which provide access to additional expertise, technology, and specialised capabilities.

“This is giving rise to a new generation of investment ‘hyperscalers’. Borrowing the term from the technology sector, these are organisations that use their scale alongside their capabilities, relationships and governance to gain greater influence and deliver better outcomes. For pension funds, it is not just about getting bigger, but about making their scale work harder.”

“AI will be an important part of this, but ambition is currently running ahead of readiness. Funds are clear on the potential of AI to improve investment decisions and make their organisations more effective, but many are still building the data, processes and infrastructure needed to put it to work. The opportunity is significant, but progress will depend on strengthening the data, workflows and organisational foundations required to scale AI effectively.”

Top 20 pension funds (US$ millions)

Australian funds in the top 300 pension funds (US$ millions)

About the Thinking Ahead Institute at WTW

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, wealth providers and strategic partners, the Institute drives innovation through collaborative research and practical solutions. Since its founding in 2015, the Institute has convened more than 150 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.

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.

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Footnotes

1. Most Australian assets are valued as at 30 June 2025 given financial year locally. Return to article undo