Worldwide retirement assets are projected to grow 64% to €36 trillion ($45.6 trillion) as by 2020, for a compound annual growth rate of 4.7%, according to an Allianz study.
U.S. retirement assets, which stood at €11.1 trillion at the end of 2009, are expected to grow to €16.3 trillion by 2020, according to the Allianz Demographic Pulse study. That’s a compound annual growth rate of 3.6%.
“The emerging markets of Asia will develop most dynamically,” Renate Finke, senior pension analyst at Allianz, said in a news release about the projections. “By 2020, these markets are expected to grow by 16.8% a year, reaching a total volume of €2.2 trillion, or the size of United Kingdom’s current (retirement) market.”
Investment losses in 2008, maturing pension systems, as well as longevity and reforms of pay-as-you-go public pension systems will contribute to a greater need for retirement savings in the future, Allianz found. “It will be necessary for future retirees to diversify sources of retirement income,” Ms. Finke said.