Research: International Pension Plan Survey 2017

The annual International Pension Plan Survey looks at international pension plans (IPPs) and international savings plans (ISPs). Conducted by Willis Towers Watson, it examines specific plan design features and membership or eligibility criteria. 

Key findings:

• IPPs/ISPs can provide a valuable vehicle that can safeguard employees’ savings from any local economic or political turbulence.
• The majority (62 per cent) of plans have a global coverage, with the rest restricted to different regions.
• 58 per cent have been established with a 'retirement objective' (IPPs), with 42 per cent having a more shorter-term 'savings objective' (ISPs). The trend of an increasing interest and shift towards an ISP savings-based approach continues.
• Trusts are the most popular arrangement used to hold the contributions and assets of IPPs/ISPS, with 77 per cent of new plans set up in 2017 being Trust-based.

The survey found that the IPP/ISP market is continuing to grow, demonstrating the trend for IPPs/ISPs to be set up by global companies with internationally mobile employees, and local employees that require pension provision where local arrangements are inadequate or absent.