Demand for Shariah pensions options and a broader approach to ESG-investments is growing, due to more multinational companies adopting international pensions plans.
Research by WTW found there had been a “significant expansion” of these IPPs and International Savings Plans by global companies, particularly in regions with underdeveloped retirement markets and amid more turbulent economic conditions.
According to the study, which covers 1154 plans, almost six out of 10 IPPs are now offered globally, and in the past five years a quarter (25 per cent) of new lans have been made available to groups of local employees. This compares to just 13 per cent of the total IPPs in operation, demonstrating a shift towards more inclusive access to these savings vehicles.
This International Pension Plan (IPP) Survey also highlights rising demand for ESG and Shariah-compliant investments.
Demand for overall ESG investment options from employers has increased to 62 per cent in 2025, up from 51 per cent in 2019.
Within ESG, adoption of Shariah-compliant investment options has become one of the biggest trends in IPPs. 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.
The report shows that while average employer contribution rates have remained stable, improvements have been made in member outcomes. This comes as a third (31 per cent) of IPPs have broadened their pensionable salary definitions to include bonuses as well as base salary, while 61 per cent require employee contributions.
The survey showed that technology is also playing a crucial role in enhancing member experience, with three-quarters (77 per cent) investing in online budgeting tools and nearly two-thirds (62 per cent) in a mobile app, empowering employees to actively engage with their financial futures.
More than eight out of 10 providers (83 per cent) said they have plans to enhance their financial wellbeing offering further over the next two-years.
Michael Brough, senior director, integrated and global solutions at WTW says: “Employers are recognising the value of IPPs and ISPs in providing flexible, portable retirement solutions for their global workforce. This trend is driven by the need for more adaptable and sustainable retirement plans that can accommodate diverse employee needs.
“The increasing demand for Shariah investments reflects a broader shift towards more inclusive and sustainable investment practices. Another trend we’re seeing is access to private market investments starting to become available to savers through their IPP, 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.”
Brough adds: “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.”
