Insight

Retirement round-up: Navigating global pension reforms with confidence

Published

18 August 2025

Read time

5 minutes

From compliance to competitiveness: how pension reforms are reshaping retirement strategies worldwide

Pension systems across the world are evolving fast. Every country has its own approach, yet they are all being reshaped by the same pressures: ageing populations, economic change, and shifting markets.

As of June 2025, market conditions are adding extra complexity. Over the quarter corporate bond yields held steady in the Eurozone, edged higher in the US, and dipped slightly in the UK. These shifts affect discount rate assumptions and the funding position of defined benefit plans. Equity markets also lifted this quarter, with gains of 4% in the UK, 5% in the US and Japan, and 6% in Europe, improving the picture for many DB pension schemes (MBWL, 2025).

People are also living longer than they think. For example, in the UK, Barnett Waddingham research found that men expect to live to 82 when the reality is closer to 86. Women assume they will reach 82, yet life expectancy is 89 (Barnett Waddingham, 2024). That gap can mean an extra £20,000 to £35,000 needed in retirement savings for someone looking to draw a modest £5k per annum pension starting withdrawals at 65. Longer lifespans are one of the biggest drivers of reform worldwide.

For multinational employers, the question is clear. How can you stay ahead of these shifts, manage costs, protect your people’s future, and build benefits strategies that work across borders? Here are the latest developments in key markets.

National Insurance increase and salary sacrifice ppportunities

From April 2025, Employers’ National Insurance Contributions rose from 13.8% to 15%. The change will influence cost planning, yet it also creates an opportunity to improve efficiency. Salary exchange (salary sacrifice) can save employers 15% on NICs for pension contributions, helping balance higher payroll costs while increasing employee savings.

With upcoming changes to auto-enrolment thresholds and the removal of the lower earnings limit, this is the moment to review both pension arrangements and overall reward strategies.
 

Catalyst DC pension: Summer edition 2025 - Briefings | Barnett Waddingham

Phased increase in employer contributions

Chile’s pension reform, approved in January 2025, will raise employer contributions from 1.5% to 8.5% of taxable income over nine years, starting in August 2025. The increase will raise labour costs, especially in labour-intensive industries, and will require updates to payroll systems.

The reform also introduces measures to reduce gender disparities in pensions and to raise the minimum pension level. Both changes support a more equitable retirement system, but they require employers to plan ahead for both funding and administration.

Auto-enrolment launch in 2026

From January 2026, Ireland will introduce a national auto-enrolment pension savings scheme. Employees aged 23 to 60 earning more than €20,000 a year, without a qualifying pension, will be automatically enrolled. Contributions start at 1.5% each for employers and employees, with a state top-up. Rates will rise to 6% over ten years.

The scheme has limitations. There is no option for additional voluntary contributions, contributions are capped at €80,000 of salary, and benefits are tied to the state pension age. Many employers are choosing to get ahead by introducing more attractive schemes for all staff and avoiding the complexity of running dual arrangements.

More time for pension reform transition

Dutch employers now have until 1 January 2028 to move to defined contribution plans with flat-rate contributions for all employees. This change will replace defined benefit plans and age-based contribution rates.

The reform affects every employer, even those already offering flat-rate DC plans. Early-retirement responsibilities, particularly in physically demanding sectors, are attracting more attention (MBWL, 2025).

Defined contribution growth is a global trend. Barnett Waddingham’s latest analysis of 122 large DC schemes showed combined assets of more than £157 billion, up from just under £128 billion the previous year (Barnett Waddingham, 2025).

A growing pension powerhouse

Asia-Pacific is now one of the fastest-growing pension markets. PwC projects assets in the region will almost double from USD 15.1 trillion in 2017 to USD 29.6 trillion by 2025, driven by rising wages, expanding coverage, and stronger economies (PwC, 2023).

For global employers, this growth means more regulatory diversity to manage and more opportunities to design competitive benefits that meet the expectations of a rapidly evolving workforce.

What employers can do now

Global pension reform is moving quickly. Multinational organisations can use this moment to strengthen their position.

  • Map your pension footprint
    Identify which markets are affected by upcoming reforms and assess the cost, compliance, and employee impact.
  • Run the numbers
    Model liabilities using the latest market data, including discount rates, mortality assumptions, and new contribution rules.
  • Review contribution strategies
    Assess whether your current approach to employer and employee contributions delivers the best balance of cost efficiency and employee value in each market.
  • Get ahead of regulation
    In countries with pending reforms, redesign plans early to meet future requirements and to improve employee experience.
  • Stay close to growth markets
    Monitor Asia-Pacific developments and adapt quickly to local regulations while aligning with your global strategy.

Ready for reform? We’re here to help

Our experts can guide you through pension changes across every market, balancing compliance with real value for your people.

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