United Kingdom Pension Fund Market Insights Forecasts to 2033

• The Market is growing at a CAGR of 4.1% from 2023 to 2033
• The U.K. Pension Fund Market Size is expected to hold a significant share by 2033

The United Kingdom Pension Fund Market is anticipated to hold a significant share by 2033, growing at a CAGR of 4.1% from 2023 to 2033. The growing shift to capital light products from traditional products and a push for technology-led engagement are driving the growth of the pension fund market in the United Kingdom.     

Market Overview

Pension fund is a long-term investment entities that build up assets over a worker’s working years in order to support and pay for retirement. It ensures financial security and stability for individuals in their retirement years. Pension funds use a range of investing strategies, from more aggressive ones targeted at long-term growth and capital appreciation to more cautious ones focused on income generation. Capital that is accumulated by the pension fund is distributed to employees as a pension when they retire at the conclusion of their employment. In order to make money, the pension fund market pools the substantial amount of money invested in equities and bonds on the capital market. The continuous increase in the aging population in the United Kingdom demonstrates an emerging opportunity for the pension fund market. With the utilization of data analytics and financial technology (fintech) advancements, pension funds may improve member involvement, investment decision-making, and operational efficiency. Factors such as a variety of legal, economic, demographic, investment, governance, and technical factors influence the UK pension fund market.

Report Coverage

This research report categorizes the market for the UK pension fund market based on various segments and regions and forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the Pension Fund market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the pension fund market.

Driving Factors

The increasing ageing population rate in United Kingdom impact pension fund liabilities and funding requirements that leads to drive the market. Further, the employment rate in the UK has been gradually increasing over time, and as of last year, there were about 35 million individuals employed. This leads to an increase in the number of employee-created pension fund accounts resulting in driving the market growth. The shift to capital-light products such as defined-contribution workplace pensions, that give consumers more power to manage their overall wealth are contributing to market growth. The increasing use of data analytics and financial technology (fintech) advancements are further driving the UK pension fund market.

Restraining Factors

The market volatility in UK negatively affects the pension fund market. In addition, the changing demographic structure and organizational factors are further restraining the market growth of pension fund.

Market Segmentation

The United Kingdom Pension Fund Market share is classified into plan type and asset.

• The distributed contribution plans segment dominates the United Kingdom pension fund market during the forecast period.

Based on the plan type, the United Kingdom pension fund market is divided into distributed contribution, distributed benefit, reserved fund, and hybrid. Among these, the distributed contribution plans segment dominates the United Kingdom pension fund market during the forecast period. Distributed contributions include pension plans in which employees and employers contribute on a regular basis to separate accounts. The inclination towards individualized retirement planning leads to drive the market in the distribution contribution segment.

• The equities segment is dominating the United Kingdom pension fund market during the forecast period.       

Based on the asset, the United Kingdom pension fund market is divided into equities, fixed income securities, and real estate. Among these, the equities segment is dominating the United Kingdom pension fund market during the forecast period. Equities are the crucial component of pension fund as it offer the potential to high returns over long term. There is high market growth pension fund equities assets in regions with well-developed capital markets and a strong culture of equity ownership. 

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the UK Pension Fund market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Universities Superannuation Scheme (USS)
• Natwest Group Pension Fund
• Electricity Supply Pension Scheme (ESPS)
• BT Pension Scheme ( BTPS)
• Railway Pension Scheme (RPIL)
• HSBC Bank Pension
• Local Government Pension (LGPS)
• Barclays Bank UK Retirement Fund
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Developments

• In January 2024, Aptia, a dedicated pension, health and benefits administration specialist, announced its formal launch with 1,100 global clients to support more than 7 million people with health and wealth administration. 
• In June 2023, Banking organisation Natwest Group has completed its acquisition of a majority shareholding in workplace savings and pensions fintech Cushon.  

Market Segment

This study forecasts revenue at United Kingdom, regional, and country levels from 2020 to 2033. Spherical Insights has segmented the United Kingdom Pension Fund Market based on the below-mentioned segments:

United Kingdom Pension Fund Market, By Plan Type

• Distributed Contribution
• Distributed Benefit
• Reserved Fund
• Hybrid

United Kingdom Pension Fund Market, By Asset

• Equities
• Fixed Income Securities
• Real Estate