Top 10 Countries with the Highest Public Pension Wealth in 2025

Public pension wealth, the total value of assets held by a country’s public pension system, plays a critical role in determining its financial stability and social security outlook. These funds ensure economic security for retired individuals, offering financial independence in their later years. In this article, we explore the top 10 countries with the highest public pension wealth in 2025, highlight the position of India, and examine the challenges and reforms in its pension system.

Understanding Public Pension Wealth

Public pension wealth is the total accumulated value of assets held by a government’s public pension system. These assets are primarily funded through contributions from employees, employers, and, in some cases, the government. Managed by public pension schemes or specialized government agencies, these funds are strategically invested to generate returns, ensuring the sustainability of the pension system and its capacity to meet future obligations.

Importance of Public Pension Wealth

Public pension systems serve as a cornerstone of social security, ensuring:

• Economic security in retirement for individuals.
• Financial stability for governments by reducing poverty among the elderly.
• Sustainability of retirement benefits for future generations.

The size of a country’s public pension wealth reflects its commitment to providing retirement security and financial inclusion.

Top 10 Countries with the Most Public Pension Wealth in 2025

According to the latest Global SWF 2025 report, the following nations lead the world in public pension assets:

Key Highlights

1. United States: The USA leads the global rankings with $11.76 trillion in public pension funds, reflecting its robust social security system.
2. Japan: Although ranked second in total public pension assets, Japan boasts the world’s largest pension fund, the Government Pension Investment Fund (GPIF), with assets valued at $15.93 trillion.
3. Canada, Netherlands, and Australia: These countries emphasize well-structured, sustainable pension systems that prioritize inclusivity and financial growth.

Where Does India Stand in 2025?

Despite being the world’s most populous nation, India ranks 14th in public pension wealth, with total assets of $305 billion, as per the Global SWF 2025 report. This figure underscores significant gaps in the inclusivity and sustainability of the country’s pension system.

Challenges Facing India’s Pension System

India’s low ranking can be attributed to several structural issues:

Low Pension Coverage:

• India’s informal sector, which accounts for nearly 50% of economic output and over 75% of employment, lacks access to adequate social security, including pensions.
• Small and medium enterprises (SMEs), along with household proprietary and partnership establishments, dominate the informal sector, leaving millions without retirement benefits.

Insufficient Social Security Programs:

• The absence of a universal pension system leaves large sections of the population, especially in rural areas, without financial security post-retirement.

Economic Inequality:

• Disparities in income and employment opportunities result in unequal access to pension benefits.

Steps Toward Reform: Unified Pension Scheme (UPS)

Recognizing the need for comprehensive pension reform, the Union Cabinet approved the Unified Pension Scheme (UPS) in August 2024. Effective from April 1, 2025, the UPS aims to:

• Provide assured pensions to government employees post-retirement.
• Ensure better financial security and inclusivity.
• Streamline the pension system for enhanced efficiency and coverage.

Global Trends in Public Pension Wealth

Why Central Banks Are Increasing Gold Reserves

Many central banks, including the Reserve Bank of India (RBI), are diversifying their reserves by increasing gold holdings to mitigate risks posed by inflation and global economic uncertainties. This aligns with the global trend of reducing dependency on foreign currencies and safeguarding public pension wealth.

Japan’s Dominance in Pension Fund Management

Japan’s Government Pension Investment Fund (GPIF) stands out for its robust governance and strategic investments, making it the largest pension fund globally. This reflects Japan’s commitment to long-term financial stability.

The Way Forward for India

India’s current position in global public pension wealth rankings highlights the need for systemic reforms and increased investment in social security programs. Key measures include:

• Expanding pension coverage to the informal sector.
• Encouraging public-private partnerships to boost funding and sustainability.
• Implementing technological advancements for efficient pension fund management.

Promoting Financial Inclusion

To improve its global standing, India must prioritize financial inclusion by providing universal access to pensions, especially for marginalized and economically weaker sections of society.