Even with the effects of the global financial crisis, at a combined annual growth rate of 4.7 per cent, the world retirement market is forecast to expand 66 per cent by 2020 with total assets climbing from $35 trillion in 2009 to almost $58 trillion.

According to the August 2010 Allianz Demographic Pulse report, Australia's retirement assets are expected to rise from $1,232 billion in 2009 to $2,919 billion in 2020.

The data showed local share of world retirement assets in 2009 was 3.5 per cent, which surpassed the shares of Japan (3.2 per cent), Northern Europe (3.1 per cent), Southern Europe (3.0 per cent), emerging Asia (1.8 per cent), and Central and Eastern Europe (0.4 per cent). The biggest shares of world retirement assets are accounted for by the US (50.5 per cent), Western Europe (20.1 per cent) and the UK (11.5 per cent).

"The Global Financial Crisis had a substantial impact on the retirement assets in most countries, for example, Australia's pool of retirement assets fell 11 per cent between 2007 and 2008, and it will take the US until 2013 for its retirement assets to catch up to their 2007 high of more than $21 trillion," said Allianz Australia Managing Director Terry Towell.

"However, the most important question is what the long-term effects of the GFC will be on retirement asset pools. Allianz's report suggests that Australia's retirement assets will grow at a solid 8 per cent per annum over the next decade," he said.

The data also said the growth of Australia's retirement assets is estimated to exceed those of all but one other developed country - Greece, which is coming off a very low base - over the period 2009 to 2020.

Source: Allianz Demographic Pulse