Press Release

Canada Pension Funds Market to Grow with a CAGR of 5.8% through 2030

The Canada Pension Funds Market thrives on aging demographics, proactive retirement planning, and favorable government policies.


According to TechSci Research report, “Canada Pension Funds Market – By Region, Competition Forecast & Opportunities, 2030F”, Canada Pension Funds Market was valued at USD 3.86 trillion in 2024 and is expected to reach USD 5.41 trillion by 2030 with a CAGR of 5.8% during the forecast period. The Canada Pension Funds Market is on a trajectory of robust growth, fuelled by significant demographic shifts, heightened awareness of retirement planning, and proactive government policies. An aging population, coupled with increasing life expectancy, underscores the need for reliable and sustainable pension systems. This demographic reality has spurred demand for Distributed Benefit Plans that offer stable, predictable retirement income and Distributed Contribution Plans that provide flexibility and individual control. Moreover, government-led initiatives, such as enhancements to the Canada Pension Plan (CPP) and Quebec Pension Plan (QPP), have bolstered the market, offering tax benefits and policy support to encourage participation across all sectors. Simultaneously, a growing culture of financial literacy and planning has led individuals and corporations to prioritize long-term financial security. Corporate adoption of pension plans has also risen, as businesses view these schemes as critical tools for attracting and retaining talent in a competitive labor market. However, the market faces challenges that could impede its momentum. Economic volatility, exacerbated by global uncertainties, impacts investment returns and fund stability. Persistently low interest rates further pressure pension funds to seek alternative, often riskier, investment options. Additionally, navigating the complex regulatory environment across provinces demands significant resources and expertise. Addressing these challenges is essential to sustaining market growth and stability.

 

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The Canada Pension Funds market is segmented into type of pension plan, end user, region and companies.

Based on Type of Pension Plan, distributed benefit (DB) plans are emerging as the fastest-growing segment in the market, driven by the aging population’s preference for stable and predictable retirement income. Unlike DC plans, DB plans guarantee a specific retirement benefit based on factors such as salary history and years of service. This predictability makes them particularly appealing to retirees and near-retirees seeking financial security. The government’s initiatives to reform public pension systems, such as enhancing the CPP and QPP, have also contributed to the growth of DB plans. Despite their declining prevalence in the private sector due to higher costs and financial risks for employers, DB plans remain popular in the public sector and among unions. The integration of sustainable investment strategies and improved fund management techniques are further revitalizing interest in DB plans, ensuring their continued relevance in the evolving market.

Based on region, Alberta is the fastest-growing region in the Canada Pension Funds Market, driven by its ongoing economic diversification and increased corporate adoption of pension plans. Traditionally reliant on oil and gas, Alberta has been actively expanding into other sectors such as technology, renewable energy, and services, creating new opportunities for employment and corporate growth. This economic shift has encouraged more organizations to offer pension plans to attract and retain a competitive workforce. Additionally, the province’s growing awareness of retirement planning among individuals has boosted participation in both distributed contribution and distributed benefit plans. Alberta’s business-friendly policies and incentives further support the adoption of corporate pension schemes, while its younger demographic is increasingly engaging with flexible and hybrid pension models. The combination of economic transformation, rising corporate involvement, and individual awareness positions Alberta as a dynamic and rapidly expanding region in the Canadian pension funds landscape.


Major companies operating in Canada Pension Funds market are:

  • Canada Pension Plan Investment Board
  • Caisse de depot et placement du Quebec
  • Ontario Teacher's Pension Plan
  • British Columbia Investment Management Corporation
  • Healthcare of Ontario Pension Plan
  • PSP Investment Board
  • OMERS Retirement System
  • Rowe Price
  • Impax Asset Management
  • Mawer Investment Management Ltd.


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“Hybrid pension plans, combining features of Distributed Benefit and Contribution models, are gaining popularity due to their flexibility and balanced risk-reward structure. These plans cater to the needs of both employers and employees, offering predictable benefits while sharing financial responsibilities.” Said Mr. Karan Chechi, Research Director of TechSci Research, a research-based management consulting firm.

"Canada Pension Funds Market By Type of Pension Plan (Distributed Contribution, Distributed Benefit, Reserved Fund, Hybrid), By End User (Government, Corporate, Individuals), By Region, Competition, Forecast & Opportunities, 2020-2030F”, has evaluated the future growth potential of Canada Pension Funds market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in the Canada Pension Funds market.

 

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