Multinationals expanding pension plan offerings to employees worldwide
Multinationals around the world are steadily expanding use of International Pension Plan (IPPs) and International Savings Plans (ISPs), particularly in regions with underdeveloped retirement markets. That is according to research from WTW.
The study from the global advisory and insurance company, which covered 1154 plans representing 375,000 members around the world, found that nearly 6-in-10 (58%) IPPs are offered globally and in the past five years a quarter (25%) of new IPPs have been made available to groups of local employees, compared to just 13% of the total IPPs in operation, demonstrating a shift towards more inclusive access to these savings vehicles.
“Employers are recognising the value of IPPs and ISPs in providing flexible, portable retirement solutions for their global workforce,” said Michael Brough, Senior Director at WTW. “This trend is driven by the need for more adaptable and sustainable retirement plans that can accommodate diverse employee needs.”
While average employer contribution rates have remained stable, the WTW report highlights that improvements have been made in member outcomes as a third (31%) of IPPs have broadened their pensionable salary definitions to include bonuses as well as base salary, while 61% require employee contributions.
ESG and Shariah Investment trends
The report also highlights rising demand for ESG and, specifically, Shariah-compliant investment options.
Demand for overall ESG investment options from employers has increased to 62% in 2025, up from 51% in 2019. Specifically, within ESG, adoption of Shariah-compliant investment options has become one of the biggest trends in IPPs. One-in-five (22%) plans now offer Shariah funds among their investment fund options and 86% of IPP providers reported further interest in this area from sponsoring employers, suggesting significant growth is still to come.
“The increasing demand for Shariah investments reflects a broader shift towards more inclusive and sustainable investment practices,” said Brough.
Improvements in member outcomes
Technology is playing a crucial role in enhancing member experience, with three-quarters (77%) investing in online budgeting tools and nearly two-thirds (62%) in a mobile app, empowering employees to actively engage with their financial futures. Over eight-in-10 providers (83%) have plans to enhance their financial wellbeing offering further over the next two-years.
With the expansion of portfolios and investment options, there is an increased need for robust governance practices. A third (34%) of IPPs now report to a governance committee, up from 20% in 2020, offering enhanced oversight in order to support the long-term financial security of a diverse workforce.
Brough said: “The future of IPPs and ISPs lies in their ability to adapt to changing employee needs and market conditions. By leveraging technology, expanding investment options and shifting from retail to lower cost institutional pricing, employers can create more effective and sustainable retirement plans.”
“The research underscores the dynamic nature of the retirement planning landscape, driven by changing employee needs, growing asset complexity, and technological advancements. As employers continue to navigate these trends, IPP and ISP will continue to evolve and innovate.”
