Pension funds in Europe - statistics & facts

European countries are faced with the problem of an ageing population, mainly due to declines in fertility, but also due to increased life lengths. The ageing population is putting pressure on the state pensions, as the proportion of individuals of working age that need to provide for those in need of pensions is just getting smaller. The size of pension fund markets in Europe, relative to the size of the economy, however, varies widely between the countries. Denmark for example, had assets in pension funds measuring up to around 230 percent of their gross domestic product (GDP), while in Greece the corresponding share was only one percent.

What is a pension fund?

Pension funds within Europe vary from country to country differing in standard practices, structure, and size. A pension fund is any program, fund, or scheme that provides income to individuals upon retirement. Pension funds may be privately run by a specific company or organization. Pension schemes may also be a public state-owned initiative. The Government Pension Fund, of Norway, is comprised of two separate sovereign wealth funds (SWFs) owned by the Norwegian government this public pension fund (PPF) is one of the largest pension funds in the world by total assets. PPFs often operate by reinvesting surplus state revenue. The Government Pension Fund, of Norway reinvests revenues from the petroleum sector generating a profit to provide retirement payments to its citizens, as the Government Pension Fund, Norway has few restrictions on membership this is an open pension fund. The ABP pension fund is another leading European fund. The ABP along with several other Dutch pension funds contributed to a total of over two trillion euros in Dutch pension fund investments. Unlike the Government Pension Fund, of Norway however, the ABP pension fund is considered to be a closed-end fund as it is offered only to government and education employees.

Asset management

The total assets held in pension systems throughout Europe must be effectively managed to generate a net investment return on pension fund investments. Pension funds typically allocate the majority of assets to fixed-income and equity products, making adjustments as needed based on factors such as economic conditions and the portfolio lifecycle. Pension funds have the ability to be more aggressive earlier in investing in higher-risk securities to achieve higher gains and have the time to recoup any losses endured. Fund managers in Europe will typically allocate assets across debt, equity, and hybrid financial securities. Broad portfolio allocation allows pension fund managers to diversify risk and keep up with changing economic and financial challenges being presented in the global economy.
This text provides general information. Statista assumes no liability for the information given being complete or correct. Due to varying update cycles, statistics can display more up-to-date data than referenced in the text.
Published by Statista Research Department, Sep 25, 2023

Key insights

Value of investment fund shares held by pension funds in the Euro area
1.3tr EUR
Value of debt securities held by pension funds in the Euro area
30.5bn EUR
Value of equity securities held by pension funds in the Euro area
391.2bn EUR
Get more insights

Editor’s Picks Current statistics on this topic

Share of population that are aged 65 years and older in European countries in 2021

Population

Share of population over the age of 65 in European countries 2021

Total pension funds assets of selected countries worldwide in 2021 (in billion U.S. dollars)

Investment Funds

Total pension assets of selected countries worldwide 2021

Pension funds as a share of gross domestic product (GDP) in selected European countries as of 2022

Investment Funds

Pension funds as GDP share in selected European countries as of 2022

Total assets reported by pension funds in the Euro area from Q1 2008 to Q2 2023 (in million euros)

Investment Funds

Total assets reported by pension funds in the Euro area Q1 2008-Q2 2023

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Retirement assets worldwide
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