International Pension Plan Survey 2025

Expanded demand

International Pension Plans (IPPs) and International Savings Plans (ISPs) were originally used by multinational employers to provide retirement or savings benefits to employees who may not be eligible for home country retirement plans or where local (host) solutions are unavailable or unsuitable. Today, they have evolved beyond their traditional expatriate focus to include a wider range of employees including local employees (Figure 1), especially in regions with underdeveloped retirement markets or economic instability. One in four new plans in the past five years include all local employees.

Inclusive design and choice

Employers are redesigning plans to reflect the diverse needs of their workforce, with a strong focus on inclusivity and member engagement.

• 54% of plans use flat contribution rates, up from 38% in 2015.
• 58% include ESG investment options, with growing interest in sustainability.
• 22% offer Shariah-compliant funds, with strong demand in the Middle East, Africa, and Asia.

Other findings include

• Improved member outcomes: Employers are restructuring plans to improve retirement readiness and financial wellbeing.
• 76% of plans offer immediate vesting of employer contributions.
• 31% of plans define pensionable salary as base salary + bonus, more than double from a decade ago.
• Governance: 34% of plans now report to a governance committee, up from 20% in 2020.
• Technology: 56% use AI to evaluate member satisfaction and engagement.