Recent studies conducted by Willis Towers Watson into Global Pension Assets concluded that Australia has been one of the worlds most successful pension markets, with assets under management increasing on average 11.3% p.a. over 20 years to 2020 in USD terms. This figure represents fund returns and mandatory/voluntary contributions into the superannuation system.
The Global Pension Study covers 22 major pension markets, Australia, Brazil, Canada, Chile, China, Finland, Germany, Hong Kong, India, Italy, Japan, Malaysia, Mexico, Netherlands, South Africa, South Korea, Spain, Switzerland, UK and the US (the P22.) As at December 2020 the P22 had roughly US$52,522 billion in pension assets, which accounts for roughly 80% of the GDP of these countries. As shown in the below table, pension assets as a percentage of a countries GDP concluded that The Netherlands had the highest assets/GDP ratio, representing 214%, with Canada coming in second with 192% followed by Australia at third, with 175%. It can also be seen that China had the lowest assets/GDP ratio, representing only 1.9% of GDP. In terms of total pension assets, the US clearly has the largest size, representing 62% of the total P22 assets, followed by the UK and Japan, with Australia coming in at number five.