Pension Administration Software Market Expected to Reach $13 Billion by 2032

According to a new report published by Allied Market Research, titled, “Pension Administration Software Market," The pension administration software market was valued at $4.5 billion in 2022, and is estimated to reach $13 billion by 2032, growing at a CAGR of 11.4% from 2023 to 2032.

The pension administration software market is a robust system which helps to handle multi-organization unit's pensioners having variety of pension rules and schemes. It offers pension software, which is fully integrated, browser-based software system with comprehensive functionality for administering pension benefits. Moreover, it typically includes a range of features and tools to help administrators manage these tasks efficiently and accurately. The pension administration software market includes tools for tracking and managing plan assets and investments, calculating benefits, generating reports and statements for plan participants, and handling plan enrollments and terminations. In addition, it facilitates the smooth and hassle-free administration of retirement benefits management. Furthermore, all the aspects like superannuation, gratuity, accounting and provident funds are easily managed through this pension administration software. Employees get the facility to view PF balance and update PF yearly passbook in this pension management software in India. They can also avail handy tools like the pension calculation sheet and gratuity calculation sheet.

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.

Furthermore, 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, retirement administration, and integration of mobile technology in pension administration software are expected to provide lucrative opportunities for the pension administration software market growth of the market during the forecast period. On the contrary, technology limitation on the aged/old age people and high implementation costs limits the pension administration software market growth.

By end user, the employers segment dominated the global pension administration software market share in 2022 and is expected to rule the boost by 2032, owing to automate more of the pension administration process, including things like contribution tracking and benefit calculations. In addition, many employers are providing employees with access to their own pension information through self-service portals, allowing them to make changes or updates to their accounts. Furthermore, as regulatory requirements for pension plans continue to evolve, employers are increasingly turning to software that can help them meet these requirements by providing compliance and reporting features. However, pension plan administrators are expected to witness significant growth in pension administration software market during the forecast period, owing to increasingly demanding transparency and accountability from plan administrators. Pension administration software can help administrators to provide this by making it easier to track and report on plan activities.

Region-wise, the pension administration software market size 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.

The COVID-19 pandemic has significantly impacted pension administration software in several ways, It has accelerated the adoption of digital solutions across the financial sector, including pension management. With remote work becoming the norm, there's been an increased demand for cloud-based pension administration platforms to ensure uninterrupted access to critical pension data and functionalities from anywhere. This shift has driven software developers to prioritize features like remote access, collaboration tools, and robust security measures to safeguard sensitive pension information in distributed work environments. The pandemic has highlighted the importance of automation and efficiency in pension administration processes. Faced with disruptions and resource constraints, pension administrators have turned to technology to streamline workflows, automate routine tasks, and improve operational resilience. This has led to the integration of AI and robotic process automation (RPA) capabilities into pension administration software, enabling faster processing times, reduced errors, and greater scalability to handle fluctuations in workload.

Moreover, COVID-19 has underscored the need for enhanced risk management and scenario planning in pension investments. Market volatility and economic uncertainty spurred by the pandemic have prompted pension fund managers to reevaluate their investment strategies and asset allocations. In response, pension administration software market has incorporated advanced analytics and predictive modeling tools to assess and mitigate investment risks, optimize portfolio performance, and ensure the long-term sustainability of pension funds.

Technological Advancements

Pension administration software market trends are continually evolving to meet the complex needs of pension management in a digital age. The integration of artificial intelligence (AI) and machine learning (ML) algorithms to streamline processes and enhance decision-making capabilities. These technologies can automate routine tasks, such as data entry and validation, while also providing insights for optimizing investment strategies and risk management. Additionally, there's a growing emphasis on cloud-based solutions, enabling real-time access to pension data from anywhere, facilitating collaboration among stakeholders and ensuring scalability to accommodate changing demands. Another trend is the incorporation of blockchain technology for enhanced security and transparency in pension transactions, ensuring data integrity and minimizing fraud risks. Furthermore, user-centric design principles are being increasingly adopted to improve the user experience and accessibility of pension administration platforms, making it easier for pension fund managers, administrators, and beneficiaries to navigate and utilize the software effectively.

Key Findings of the Study

• By component, the solution segment held the largest share in the pension administration software market for 2023.
• By deployment mode, the on-premise held the largest share in the pension administration software market for 2023.
• By type, the private pension segment is expected to show the fastest pension administration software market growth during the forecast period.
• By end users, the pension plan administrators segment is expected to show the fastest pension administration software market growth during the forecast period.
• By pension fund size, $1 billion to $5 billion held the largest share in the global pension administration software market for 2023.
• Region-wise, North America held the largest market share in 2023. However, Asia-Pacific is expected to witness the highest CAGR during the forecast period.

The key players profiled in the pension administration software market analysis are Capita plc., Civica, Congruent Solutions, Inc., Equiniti, Levi, Ray & Shoup Inc., PensionSoft Corporation, LLC, Sagitec Solutions, TatvaSoft Software Development Company, WTW, and Zellis. These players have adopted various strategies, including partnership, collaboration, product launch, and developments to increase their market penetration and strengthen their position in the pension administration software industry.