Demographic Pulse: Big and getting bigger

Despite the effects of the current financial crisis by 2020 the global retirement market is expected to grow by 66%, representing an annual growth rate of 4.7%, according to the recent Allianz Demographic Pulse. Total pension assets will increase from €22 trillion, to €36 trillion. Renate Finke, Senior Pension Analyst at Allianz says: “We expect the escalation in retirement savings to be the driving force for the development of the monetary wealth in many countries in Europe, Asia-Pacific and the United States.”

Covering slightly more than half of the world’s total retirement assets of some €22 trillion, in 2009 the United States was the leading retirement market in the world, followed at 11.5% by the United Kingdom. Western Europe’s combined retirement assets came to slightly more than 20% while Australia and Japan each laid claim to 3% of the global market. The emerging economies of Asia and central and eastern European (CEE), which are still in the early stages of building up their individual funded pension systems, represented currently only minor shares (1.8% and 0.4%, respectively).

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