Beyond borders, beyond tomorrow: securing futures with international pensions for NGO workers

The NGO sector thrives on a global workforce, with dedicated professionals often serving in diverse and challenging environments.

While these individuals focus on making a global impact, it’s crucial to address their long-term financial well-being. A key benefit that international NGOs can offer is an international pension plan, which provides security and stability for any employees posted abroad.

Traditional domestic pension schemes often fall short for international workers. Here are the seven reasons why an international pension is essential.

1. Portability and continuity

NGO work frequently involves relocating across borders. Domestic pensions tied to specific countries becomes impractical in these circumstances. International pensions offer seamless portability and ensure consistent growth and stability, regardless of location.

2. Mitigating currency fluctuations

International assignments expose individuals to currency fluctuations. International pensions offer a crucial advantage by allowing savings in stable currencies like USD, GBP or EUR. This protects against local currency depreciation, which enables more predictable retirement planning and simplifies international transactions. Jurisdictions like the Isle of Man facilitate this stability.

By having a pension in a stable currency, NGO workers posted abroad can benefit from:

• Reduced exposure to local market volatility: Retirement savings are less susceptible to the economic ups and downs of a single host country.
• Greater predictability of future value: Stable currencies generally experience less dramatic fluctuations, allowing for more reliable retirement planning.
• Ease of international transactions: When retirement comes, accessing funds in a widely accepted currency simplifies international transactions and potentially reduces conversion costs.

3. Tax efficiency and compliance

Managing pensions across multiple jurisdictions can be complex. International pension plans, particularly from well-regulated jurisdictions like the Isle of Man, offer tax-efficient solutions. The Isle of Man provides a tax exemption which allows contributions and investment earnings to grow tax-free; tax liability typically arises only in the member’s country of residence at payout. The Isle of Man government ensures these pensions meet high regulatory standards, similar to domestic pensions.

4. Attracting and retaining talent

Offering a comprehensive international pension plan demonstrates a commitment to employee well-being, which makes an NGO more attractive to skilled professionals.

5. Flexibility and customisation

International pensions can be tailored to meet the unique needs of NGO workers, with flexible contribution options and investment choices provided by globally recognisable investment managers.

6. Long-term security

An international pension provides financial stability, allowing NGO workers to focus on their work without worrying about their long-term future.

7. The Isle of Man advantage

The Isle of Man is a reputable jurisdiction for international pensions. It offers:

• a strong regulatory framework
• political and economic stability
• tax-efficient solutions
• experienced pension providers.

Providing an international pension plan is a vital investment in NGO employees. It empowers them to focus on their work, secure in the knowledge that their future is protected. By partnering with iPlan Retirement Solution, which is based in the Isle of Man, NGOs can offer a robust international pension plan as an integral part of their employee benefits package.

Find out more about iPlan.