Global Mobility Guide | The pros & cons of international pensions for expats

The need for all individuals to save for their future retirement needs is not simply a ‘nice to have’, it is essential: security and safety representing a basic necessity of all humans in Maslow’s infamous hierarchy¹. However, this basic need is becoming ever harder for companies with globally mobile workers to provide thanks to the market complexities involved. In fact, some pension providers are simply refusing to cover those living and working abroad thanks to the ambiguities involved with regards to local legislation.

Against this backdrop, International Pensions Plans (IPPs) represent a welcome solution. But it’s important to understand the pros and cons of this approach in order to make informed decisions in line with employee benefit strategy.

Growing need
The mobile employee population is increasing like never before. Emerging markets have created a significant shift in mobility patterns. Plus, the world is now truly connected with more global assignees, business travel, virtual tools and, especially, more short-term assignments.

PricewaterhouseCooper (PwC)² predicted 50% overall growth in international assignments over the two decades to 2020.