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A47386 | Pages: 330 | Charts: 62 | Tables: 182 |
The global pension administration software market was valued at $4.5 billion in 2022, and is projected to reach $13 billion by 2032, growing at a CAGR of 11.4% from 2023 to 2032.
Pension is a kind of retirement income that individual planned throughout the life to ensure an income source. Moreover, it is an investment that grows through regular contributions. In addition, pension administration software helps in establishing, maintaining, and investing the pension fund in accordance with the plan terms; maintaining complete and accurate plan records; ensuring that appropriate contributions are made to the pension plan; and making benefit payments to plan beneficiaries. The pension administration software helps to reduce process turnaround time by automating pension processes which use to take a long time to do manually.
Moreover, posting late fees, creating and delivering letters of default, and calculating penalties and fees are all just a few of the tasks which are done through software management. Also, this pension administration software helps to streamline many elements of day-to-day work, allowing the team to focus their efforts and energy on what is extremely crucial and simply eliminate lower-value, time-consuming duties. Moreover, pension administration software helps to save money by changing the process to work in a better way. Such advancement in technology helps to improve the organization's bottom line by decreasing procurement costs and improving efficiencies across the board. In addition, with the long process of managing and investing the pension funds in the employee's retirement savings account (RSA), had been made easy by adopting such pension administration software technology.
In addition, the pension administration software market is expected to witness notable growth, owing to modern customer experience, pension administration software helps to reduce processing time, efficiency and cost effectiveness and increase in demand for pension administration software market. Moreover, technological advancements in the field of administration and integration of mobile technology in pension administration software are expected to provide lucrative opportunities for the growth of pension administration software market during the forecast period. On the contrary, technology limitation on the aged/old age people and high implementation costs limits the growth of the pension administration software market.
The pension administration software market is segmented on the basis of component, deployment mode, type, end users, pension fund size, and region. By component, it is segmented into solution and service. By deployment mode, it is bifurcated into on-premise and cloud. By type, it is segmented into public pension and private pension. By end users, it is segmented into employers, pension plan administrators, government agencies, and others. By pension fund size it is segmented into less than $500 million, $500 million to $1 billion, $1 billion to $5 billion, $5 billion to $10 billion, and $10 billion and above. By region, the pension administration software market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
[COMPONENTGRAPH]
On the basis of component, the solution dominated the pension administration software market size in 2022, owing to improve productivity and cut costs by automating numerous manual processes and reducing the requirement for paper-based record keeping. Furthermore, by making it simpler to track and report on plan operations, pension administration software assists governmental organizations in delivering better openness and responsibility to plan participants. However, services are expected to witness the fastest pension administration software market growth, owing to increase in the adoption of digital technologies across various industries and availability of desired information from anywhere at any time are putting data privacy and protection at greater risk. Moreover, pension administration services help organizations in threat detection and risk management.
[REGIONGRAPH]
Region-wise, the pension administration software market share was dominated by North America in 2022 and is expected to retain its position during the forecast period, owing to fund management and investment management are increasing in the U.S. for which customers demand a robust pension settlement procedure. Therefore, companies in this region are adopting pension administration software to do the work fast and efficiently. However, Asia-Pacific is expected to witness significant growth in pension administration software market during the forecast period, owing to influencing the use of pension administration software in the banking and financial institution industry for better decisions, better customer experiences, and significant cost savings. Furthermore, as a result of the coronavirus disease (COVID-19) outbreak, financial institutions all over the world are increasingly turning to digital/automation channels to provide pension related services and dealing with pandemic challenges.
Competitive analysis and profiles of the major players in the pension administration software market include Capita plc., Civica, Congruent Solutions, Inc., Equiniti, Levi, Ray & Shoup Inc., PensionSoft Corporation, LLC, Sagitec Solutions, TatvaSoft Software Development Company, WTW, and Zellis. Major players have adopted product launch, partnership, collaborations, and acquisition as key developmental strategies to improve the product portfolio and gain strong foothold in the pension administration software industry.
On November 2023, Capita PLC secured a $261.18 million contract spanning 10 years to manage the Civil Service Pension Scheme (CSPS) for the UK Cabinet Office, effective September 2025. The CSPS, among the UK's largest public sector pension schemes, is planned for modernization with advanced system design and digital innovation. Capita intends to incorporate generative artificial intelligence (GenAI) technology to personalize and enhance the pension experience for CSPS members.
On October 2023, Congruent Solutions, the U.S. retirement plan administration software provider, partners with Chennai's Catalincs Partners to drive growth and stakeholder value. Catalincs employs a "Grow First, Pay Later" model, incentivized by hitting revenue and valuation targets. Backed by Sanaka Capital, Congruent offers end-to-end retirement solutions with its CORE suite. The collaboration seeks accelerated growth, leveraging Catalincs' expertise and Congruent's industry leadership.
On October 2022, WTW announced the sale of its Dutch Premium Pension Institution (PPI), LifeSight, to Athora Netherlands pending regulatory approval. The merger with Athora's Zwitserleven PPI is expected to create a $2.65 billion pension vehicle with 126,000 participants. WTW is seeking a new sponsor to accelerate growth, citing challenges in the competitive PPI market. The transaction marks the fourth such deal in two years, signaling insurance firms' dominance in the Dutch PPI market.
On November 2022, Standard Life, a financial services company, part of Phoenix Group, partnered with Equiniti, to carry out administration of both buy-in and buy-out BPA (bulk purchase annuity) policies. This partnership is expected to provide a full administration offer designed to meet the needs of both customers and trustees in this specialist area. Through this partnership, Equiniti will deliver a self-service portal that places customer experience at the center of the proposition.
On December 2023, Zellis, the leading provider of payroll and HR software in the UK and Ireland, has unveiled significant updates through its HCM Cloud 7.0 release, designed to enhance customer operations and colleague experiences. The release encompasses enhancements to National Minimum Wage calculations, the introduction of a developer portal for API guidance, and a real-time connector to SAP SuccessFactors, aimed at streamlining data synchronization.
The pension administration software helps to reduce process turnaround time by automating pension processes which use to take a long time to do manually. Moreover, posting late fees, creating and delivering letters of default, and calculating penalties and fees are all just a few of the tasks which are done through software management. Also, this pension administration software helps to streamline many elements of day-to-day work, allowing the team to focus their efforts and energy on what is extremely crucial and simply eliminate lower-value, time-consuming duties. However, the major component of administration function is monitoring pension, providing better pension plan to customers. Furthermore, it helps in creating and generating the accounting reports and often invoices and statements for the customers, which is another critical aspect. In addition, it helps to ensure the accuracy of the data and makes it easy to extract the right information in real-time and when required for any reporting period, thus this helps to reduce the processing time. Therefore, this is a major factor to boost the pension administration software market.
The demand for software solutions to manage pensions is booming. As people get older and economies change, there's a growing need for better pension management. This has created a demand for software that can make managing pensions easier and ensure rules are being followed. For example, in the UK, the number of people receiving the State Pension went up by 140,000 to 12.6 million in August 2023.
Pension systems are getting more complicated, with more ways to invest money and rules that keep changing. So, there's a big demand for software that can handle all these complexities and do tasks automatically. Plus, many organizations are now going digital, which means they're using software to manage pensions more efficiently and save money. In India, they're using new technology to make life easier for pensioners. For instance, the government introduced Face Authentication Technology, making it simple for pensioners to submit documents online from their homes. Furthermore, there's a growing push for transparency and accountability in managing pensions. Everyone involved, from pensioners to regulators, wants real-time updates and insights. This has led to a strong demand for pension administration software market that can provide this kind of information.
Key Market Segments
Key Market Players