Empowering expatriates: The future of international corporate savings plans
Global mobility and the workforce have both experienced significant transformations in recent years.
Companies are focusing on creating positive employee experiences, integrating mobility with talent management, and ensuring compliance with complex legal landscapes.
Emphasizing sustainability, technology, and cost efficiency, they are adapting to the rise of remote work and digital nomadism.
Simultaneously, the workforce now prioritizes flexibility, wellbeing, and purpose-driven work, seeking inclusive, value-aligned workplaces.
Companies are responding to these trends by integrating mobility with talent management and ensuring compliance with diverse legal requirements.
Technological advancements, sustainability, and cost efficiency are also shaping modern mobility programs.
The rise of remote work and digital nomadism is reshaping the global workforce, making it essential for companies to offer flexible and portable savings to support their internationally mobile employees.
The WTW 2024 International Pension Plan survey highlights strong market demand for these plans, a sentiment we share.
Designed for a global population, these plans cater to internationally mobile employees from diverse geographies and nationalities.
Arrangements are usually set up in low tax jurisdictions, such as the Isle of Man, which typically uses trust-based vehicles, and Luxembourg, which utilizes contract-based arrangements.
International corporate savings plans help companies attract and retain top talent by offering benefits tailored to internationally mobile staff.
Key features include:
- Consistency across borders: These plans ensure that employees receive consistent benefits regardless of their location.
- Tax efficiency: Many international corporate savings plans are designed to be tax-efficient, helping employees maximize their savings and investment returns.
- Flexible contributions: Employers can offer flexible contribution options, allowing employees to choose how much they want to contribute to their savings plan.
- Currency options: The option to save in multiple currencies which is helpful for expats who may have income and expenses in different currencies.
- Investment options: Employees can select from a range of investment funds tailored to their risk tolerance and financial goals. Increasingly, employees seek socially responsible investment options. Companies meet this demand by offering ESG-focused funds, allowing for investments that align with personal values and contribute positively to society.
- Portability: One of the key advantages is the portability of the plan. Employees can maintain their savings and investment accounts even when they move between countries, avoiding the need to set up new accounts each time they relocate.
- Administration support: Companies often provide administrative support to help employees manage their savings plans, including assistance with enrollment, contributions, and withdrawals.
- Trust: A trust structure provides legal protection, oversight, and tax benefits, ensuring the safe and efficient management of plan assets for both employers and employees.
- Flexible benefits: Many employers now offer flexible end-of-service options, including a drawdown facility, which allows employees to access their retirement benefits more easily and according to their financial needs.
Meeting today’s workforce needs
International corporate savings plans have shifted to focus more on user experience.
This shift emphasizes digital-first approaches, empowerment, personalization and focus on financial wellbeing, reflecting trends in the Zurich Integrated Benefits Future of Benefits: 2030 report.
Key trends in corporate savings plans include:
The importance of a digital experience
Employees expect an easy-to-use platform for managing their savings plans.
A good digital experience with simple interfaces and mobile access is crucial.
Real-time data and quick navigation help employees stay engaged and in control of their financial decisions.
Using technology for enhanced communication
Technology can transform plan communication by using data and AI to provide personalized information, helping employees make informed decisions.
Tailored recommendations can align with individual financial goals and risk tolerance.
Customizable features, like contribution amounts and investment choices, allow employees to create savings strategies that fit their needs.
Personalized communication, including updates and educational materials, improves understanding and keeps employees engaged in their financial futures.
Role of empowerment and transparency
Empowerment is crucial in how employees view their savings plans.
They want control and clear information on fees, investment options, and performance.
Transparency and support for financial planning help employees feel confident in managing their savings.
The need for financial education
Finally, financial education is a key expectation that employees have from their employers.
Access to comprehensive educational resources, including webinars and workshops focused on savings, investing, and financial planning, is essential for enhancing financial literacy.
Employees benefit from initiatives designed to improve their understanding of financial concepts and retirement strategies.
In summary
As multinational companies adapt to the needs of a more diverse internationally mobile workforce, we have seen a significant shift from traditional savings mechanisms to a more holistic approach that emphasizes user experience, empowerment, and financial education.
Multinationals are looking to prioritize the development of comprehensive corporate savings plans that not only meet the needs of an internationally mobile workforce but also resonate with the aspirations and expectations of their global talent.
This forward-thinking approach will ensure that international corporate savings remain a vital component of a global benefits package, empowering employees to take charge of their financial futures in an increasingly interconnected world.
To learn more about the trends in international corporate savings plans reach out to Mark Belcher, connect on LinkedIn or for broader employee benefits insight follow Zurich Integrated Benefits.
Supplied by REBA Associate Member, Zurich
At Zurich, we’re proud to have been providing UK insurance for over 100 years. Whatever you’re looking to support or protect, we’ll do our best to help you.
