Pension assets across OECD countries reached USD 78 trillion at the end of 2025, equivalent to 106% of GDP. At that scale, asset-backed pensions don’t just matter for retirement incomes – they are also a major source of long-term investment across our economies. Pension funds are among the world’s largest institutional investors, providing long-term capital that supports investment, innovation and productivity and contributes to deeper and more resilient capital markets.
By allowing people to save and invest throughout their working lives, asset-backed pensions complement public pension systems, diversify sources of retirement income and strengthen retirement security. Their role will become even more important as populations age, putting growing pressure on pension systems and public finances.
Yet the scale of pension assets does not in itself guarantee adequate retirement incomes. In many countries, mandatory arrangements alone are unlikely to be enough for significant segments of the population.
Better outcomes require policies to support people in making sound, well-informed financial decisions throughout their lives. That includes decisions about how much to save, how to invest those savings and how to use them to provide income in retirement. The right incentives are also needed to ensure that retirement savings are effectively converted into retirement incomes. For those who do not actively engage in retirement planning, well-designed defaults and automatic mechanisms can also support retirement saving.
How savings are managed matters too. Investment returns account for a substantial share of the resources available at retirement. Sound governance, effective risk management and strong investment practices, including appropriate default strategies, are essential to long-term performance and financial security in retirement.
This edition of the OECD Pensions Outlook examines these different dimensions of asset-backed pension systems, with analysis spanning retirement saving and financial decision-making, the investment and management of pension assets, and their effective use to provide income in retirement. In so doing, it provides policymakers, regulators and stakeholders with evidence, analysis and international experience to help strengthen pension systems and improve retirement outcomes for current and future generations.
Mathias Cormann,
OECD Secretary-General