There has been a "significant" expansion in the use of International Pension Plans (IPPs) by multinational employers, particularly in regions with underdeveloped retirement markets or economic uncertainty, WTW has found. 

The group's latest IPP Survey, which covered 1154 plans, revealed that nearly six-in-10 (58 per cent) IPPs are offered globally.

In addition to this, it found that a quarter (25 per cent) of new IPPs have been made available to groups of local employees in the past five years, compared to just 13 per cent of the total IPPs in operation, demonstrating a shift towards more inclusive access to these savings vehicles.

This was not the only sign of a push towards inclusivity, as the report also identified a rising demand for environmental, social and governance (ESG) and, specifically, Shariah-compliant investment options. 

According to WTW, demand for overall ESG investment options from employers rose to 62 per cent in 2025, up from 51 per cent in 2019, and adoption of Shariah-compliant investment options has become one of the biggest trends in IPPs. 

Indeed, more than one-in-five (22 per cent) plans now offer Shariah funds among their investment fund options and 86 per cent of IPP providers reported further interest in this area from sponsoring employers, suggesting significant growth is still to come.
 
"Employers are recognising the value of IPPs and International Savings Plans (ISPs) in providing flexible, portable retirement solutions for their global workforce," WTW integrated and global solutions senior director, Michael Brough, said.

"The increasing demand for Shariah investments reflects a broader shift towards more inclusive and sustainable investment practices."

Investment decisions were not the only area where diversity and inclusion considerations could be seen at play, as WTW found that employers are increasingly redesigning plans to reflect the diverse needs of their workforce, with a strong focus on inclusivity and member engagement.

According to the survey, 54 per cent of plans use flat contribution rates, up from 38 per cent in 2015.

The report also revealed that although average employer contribution rates have remained stable, improvements have been made in member outcomes as nearly a third (31 per cent) of IPPs have broadened their pensionable salary definitions to include bonuses as well as base salary, more than double the rate seen a decade ago.

Technology is also playing a crucial role in enhancing member experience, as just over three-quarters (77 per cent) invest in online budgeting tools and nearly two-thirds (62 per cent) in a mobile app.

In addition to this, 56 per cent said that they use AI to evaluate member satisfaction and engagement, and 83 per cent said they have plans to enhance their financial wellbeing offering further over the next two years.
 
Brough said that there has also been a shift in the level of access to private market investments through IPPs, providing long-term returns and portfolio diversifying benefits. 

"As employers continue to adapt their retirement plans to meet evolving employee expectations, we can expect to see further innovation in investment options," he stated.

However, with the expansion of portfolios and investment options, there is an increased need for robust governance practices.

As a result, a third (34 per cent) of IPPs now report to a governance committee, up from 20 per cent 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.”

This article originally appeared on our sister title, European Pensions.

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