A second straight year of double-digit growth boosted global pension asset values to $52.5 trillion.
Pension fund assets within the world’s 22 largest markets saw double-digit gains for the second straight year in 2020, climbing 11% to $52.5 trillion, according to the 2021 “Global Pension Assets Study” from Willis Towers Watson’s Thinking Ahead Institute.
“In what was a highly tumultuous year, pension funds continued to grow strongly in 2020, underpinned by ongoing multi-decade themes such as the rotation from equities to alternatives and the growth of DC [defined contribution], now the dominant global pensions model,” Marisa Hall, co-head of the Thinking Ahead Institute, said in a statement.
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What is a pension?
A pension is a savings plan whereby you pay in regular amounts during your working years to create a pot of money, which you then use to take an income from in retirement.
You can plan your income for your retirement using savings, investments, personal pension or occupational pension. While savings and investments are of course a viable option, a pension should be the first port of call for the majority. At its heart, a pension is still a savings plan, but it’s specifically designed to provide you with an income to live on when you retire and has numerous tax and contribution benefits.
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| UPDATED: 14:19, Sun, Feb 14, 2021
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