Pension Administration Software Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Type (Public Pension, Private Pension), By Application (SMEs, Large Enterprises, Government), And By Geography - Forecasts From 2023 To 2028

  • Published : Jan 2023
  • Report Code : KSI061614284
  • Pages : 140

As the laws and regulations regulating second and third-pillar pension benefits continue to change in response to shifting demographic profiles and economic conditions, pension providers worldwide face pressure to fundamentally alter their pension systems. The pension market is constantly evolving, so pension providers are looking for flexible and scalable solutions for keeping up with the changing times. Therefore the market has been witnessing a rising demand for pension administration software.

The purpose of the Pension Administration Software was to especially address the special needs of pension fund administrators. Pension Administration Software, which was created to facilitate the successful recording of defined-contribution plans, reduces the number of activities that necessitate a substantial amount of manual effort by directly importing employee contributions from an employee’s file. Pension administration software saves time and reduces manual labour, provides a safe, centralized system for retirement benefits data, improves your team’s productivity and effectiveness, lowers your total pension administration costs, increases accuracy and reduces errors. This will lead to an increase in demand for pension admission software during the forecast period.

Other factors such as enhanced customer service, increased product and service innovation, improved operational efficiency the growing necessity for adherence to government pension laws and the reduction of operational risk will propel the demand for pension administration solutions globally. On the other side, data security and privacy concerns may act as hurdles that stop people from using the services. This is a crucial aspect that would restrain the growth of the global market for pension administration software.

Growing government initiatives will spur growth

One of the prime factors that will boost the growth of the pension administration software market is the rising government initiatives and adoption regarding the use of pension administration software. Due to the rise in the ageing population in various countries around the world, governments are finding it extremely difficult to manage pension administration. For instance,
the ageing of the US population is contributing to the deepening pensions crisis. The dependency ratio which is the number of working households compared with the number of retired households is estimated to drop from 3.9 in the year 2005 to just 2.3 by the year 2040. This is due to the fact that the generation of baby-boomer who was born after the second world war is moving into the age of retirement. In Australia, New Zealand, and the UK, millions more workers have been enrolled in auto-enrolment retirement savings programmes, opening up lucrative new revenue streams for asset managers who provide investment services to these programmes. As a result, rising government initiatives such as automatic enrollment in defined benefit plans, are likely to increase the adoption of Pension administration software solutions. As the laws and regulations regulating second and third-pillar pension benefits continue to alter in response to changing demographic profiles and economic conditions, pension providers around the world are feeling pressed to dramatically change their fundamental pension systems. Therefore, the growing demand for pension compliance with government rules is driving the global use of pension administration software solutions.

Increasing demand from small and medium-sized businesses as people become more aware of the advantages of utilising such software, the growing popularity of cloud-based pension management software, which is less expensive and simpler to use than traditional on-premises software, growing need for automated pension administration solutions that can assist firms in reducing processing time while improving accuracy and efficiency and growing demand for pension-related outsourcing services is boosting the market for pension administration software.

North America is anticipated to hold a significant amount of the market share during the forecast period

North American region is anticipated to hold a significant amount of market share in the global pension administration software. The region is anticipated to grow significantly during the forecast period owing to increased public knowledge of pension entitlements and government initiatives such as automatic enrollment in defined benefit programmes. According to a study by the Centre of Retirement Initiatives for Georgetown University, tens of millions of US workers may be prevented from living in poverty in their retirement if the federal government implemented a nationwide pension auto-enrolment system.

The presence of leading pension administration software firms like Aquila, Oracle, SAP, and Capita is based in the area. This will also spur market growth in this region. The rising geriatric population in countries like the USA will also lead to a rise in the adoption of pension administration software as companies and governments will find it difficult to manage pension administration.  The dependency ratio which is defined as the number of working households compared with the number of retired households is estimated to drop from 3.9 in 2005 to just 2.3 by 2040 as the baby-boomer generation born after the second world war moves into retirement.

Market Key Developments

  • In December 2022, Subject to regulatory approval, Arthur J. Gallagher & Co has agreed to buy the partnership interests of BCHR Holdings, Buck, for a total payment of $660 million (£543 million). The acquisition, which is slated to complete in the first half of 2023, intends to broaden Gallagher's value proposition in retirement, benefits and HR consulting, administration, and technology, as well as to strengthen Gallagher's professional services offering. It will also expand its offering with 'bSuite,' a proprietary software platform for benefits administration and employee engagement released by Buck in 2019.
  • In October 2022, University Pension Plan Ontario (UPP) has chosen V3locity, Vitech's cloud-native administration, engagement, and analytics solution, as its new integrated pension administration solution, according to Vitech Systems Group. The selection of V3locity by UPP strengthens Vitech's position in the Canadian market. UPP will use V3locity's CoreAdmin suite for the full range of pension administration capabilities, as well as V3locity Digital, a persona-based, self-service solution that will facilitate engagement and provide employers and members with easy, secure access to information through a single web application, across a variety of channels and devices.

Pension Administration Software Market Scope:


Report Metric Details
 Growth Rate  CAGR during the forecast period
 Base Year  2021
 Forecast Period  2023–2028
 Forecast Unit (Value)  USD Billion
 Segments Covered  Type, Application, And Geography
 Regions Covered  North America, South America, Europe, Middle East and Africa, Asia Pacific
 Companies Covered Aquila, Oracle, SAP, Capita, Civica, Equiniti, Version Systems, SYNEL MLL PayWay, L&P Systems, Vitech Systems
 Customization Scope  Free report customization with purchase



  • By Type
    • Public Pension
    • Private Pension
  • By Application
    • SMEs
    • Large Enterprises
    • Government
  • By Geography
    • North America
      • USA
      • Canada
      • Others
    • South America
      • Brazil
      • Others
    • Europe
      • Germany
      • UK
      • France
      • Others
    • Middle East and Africa
      • Israel
      • Others
    • Asia Pacific
      • China
      • Japan
      • South Korea
      • India
      • Taiwan
      • Thailand
      • Indonesia
      • Others


1.1. Market Overview

1.2. COVID-19 Scenario

1.3. Market Definition

1.4. Market Segmentation



2.1. Research Data

2.2. Assumptions



3.1. Research Highlights



4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Force Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis



5.1. Introduction

5.2. Public Pension

5.3. Private Pension



6.1. Introduction

6.2. SMEs

6.3. Large Enterprises

6.4. Government




7.1. Introduction

7.2. North America

7.2.1. USA

7.2.2. Canada

7.2.3. Mexico

7.3. South America

7.3.1. Brazil

7.3.2. Argentina

7.3.3. Others

7.4. Europe

7.4.1. Germany

7.4.2. France

7.4.3. United Kingdom

7.4.4. Spain

7.4.5. Others

7.5. Middle East and Africa

7.5.1. Saudi Arabia

7.5.2. UAE

7.5.3. Others

7.6. Asia Pacific

7.6.1. China

7.6.2. Japan

7.6.3. South Korea

7.6.4. India

7.6.5. Taiwan

7.6.6. Thailand

7.6.7. Others



8.1. Major Players and Strategy Analysis

8.2. Emerging Players and Market Lucrativeness

8.3. Mergers, Acquisitions, Agreements, and Collaborations

8.4. Vendor Competitiveness Matrix



9.1. Aquila

9.2. Oracle

9.3. SAP

9.4. Capita

9.5. Civica

9.6. Equiniti

9.7. Version Systems

9.8. SYNEL MLL PayWay

9.9. L&P Systems

9.10. Vitech Systems







Version Systems


L&P Systems

Vitech Systems