The world’s 300 largest pension funds reached a record $27.7 trillion in assets under management at the end of 2025, representing a 13.4% growth compared to the previous year and the largest annual increase recorded since 2017, according to the Global Top 300 Pension Funds report prepared by WTW’s Thinking Ahead Institute in collaboration with Pensions & Investments.
According to the report, the increase was particularly significant among the largest funds. “The 20 largest expanded their assets by 14.7%—above the average—reaching $11.9 trillion and now accounting for 42.8% of the assets managed by the world’s 300 largest funds,” they explain. Growth was uneven across different regions. North America remains the largest region in the Top 300, although it lost market share, holding 44.7% of assets in 2025 compared to 47.2% the previous year. However, over the past five years, it registered the highest annualized growth among the major regions at 6.4%.
In Europe, assets managed by the world’s major funds increased their share to 24.6%, highlighted by Norway’s sovereign wealth fund, which surpassed $2 trillion for the first time and consolidated its position as the world’s largest pension fund—12.7% ahead of the second-largest. The United Kingdom and the Netherlands were the only markets to record negative asset growth over the last five years, both in local currency and U.S. dollars, though they remain the two largest pension markets in Europe, with mature systems and a significant presence of defined benefit plans. Europe also continues to hold the lowest proportion of defined contribution assets at 13.2%, compared to 30.7% in Asia-Pacific and 31.6% in North America.
Notably, Asia-Pacific saw its share of assets rise to 26.6%. The region maintains high exposure to equities at 51.4% of its assets—the highest percentage among the primary regions—compared to 36.4% allocated to fixed income and 10.5% to alternative assets. Technology, and especially artificial intelligence, is becoming increasingly relevant for pension funds. Fifty-six percent of study participants expect AI to generate significant benefits for the sector as a whole over the next five to ten years, though ambition outpaces readiness: many funds are still building the necessary processes and infrastructure to harness its full potential. Eighty-one percent identify data quality and standardization as one of the primary barriers to achieving this.
Greater Scale and New Capabilities
The pursuit of scale remains a primary trend in the sector. Major funds are not only increasing their asset volumes, but are also seeking new ways to expand capabilities through strategic alliances and collaborations. In this context, the report introduces the concept of hyperscaling—borrowed from the tech sector—to describe how organizations can leverage scale, data, capabilities, relationships, and governance systems to improve outcomes.
“Large pension funds are growing while simultaneously seeking new ways to enhance their capabilities. Scale remains key, as does the ability to combine knowledge, technology, data, and good governance to make better investment decisions and respond to an increasingly complex environment. Spain needs to continue promoting the development of solid, efficient complementary social welfare pillars that reinforce the sustainability of future retirement income,” explains Oriol Ramírez-Monsonis, Director of Investments at WTW Spain.
The global trends highlighted by the study also point to significant challenges for pension systems, such as the need to improve investment diversification, adapt management to the evolving needs of savers, and leverage new technological capabilities to enhance decision-making.
