APAC pension markets expand as global assets hit $68.3t

Japan remains a major contributor.

Global pension assets were estimated at $68.3t in 2025, as defined contribution (DC) savings continued to drive growth, according to the Thinking Ahead Institute’s (TAI) latest Global Pension Assets Study.

Last year showed sustained recovery across global markets with strong investor sentiment and relatively contained volatility, which resulted in $6.0t of pension asset value, according to WTW.

Japan remains a major contributor, and Australia demonstrates the power of high contributions and compounding, with both markets in the global top five. 

South Korea ranks eighth, whilst 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.

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%.

In the past decade, the three predominantly DC markets have seen above-average growth, as Australia grew by 6.6% annually, the US by 7.7%, and Canada by 5.3%. 

Looking at other countries in the wider Top 22 pensions markets, South Korea, Switzerland and Hong Kong all grew by more than 8% annually over the past 10 years.

The US remains the largest single pensions market, now forming 66% of the Top 22 globally. 

However, Canada has now overtaken Japan for the first time to become the second-largest pensions market, due to strong 12% year-on-year growth.

“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,” Jessica Gao, director at the Thinking Ahead Institute said in the report.

“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,” Gao added.