Why Guernsey for Pensions?
A global leader in
Why Guernsey for pensions?
St. Peter Port, Guernsey
Why Guernsey for pensions?
Retirement saving has never been more important. There are several forces at play that are changing the landscape on how we save for the future and where that responsibility lies.
The impact of people living longer (sometimes described as the longevity crisis) means that governments will be less likely to sustain an “old age pension” as we know it. Countries are already beginning to act and bring in “auto-enrolment” which makes it mandatory for employers to provide a workplace pension and enrol their employees.
Globalisation, digital innovation and changing work practices are also changing how we need to save. Younger working generations prefer to be mobile and want to experience variety in terms of employers and countries. Digital innovation is powering opportunities as companies of any size can now have a cross-border footprint and individuals can work anywhere in the world.
Guernsey provides a safe environment for retirement saving. International retirement and savings plans can be used by employers to harmonise benefits and gain economies of scale across their global footprint. Individuals can also benefit from the portability of a Guernsey plan that can travel with them and their laptop.
Guernsey is a premier location to assist employers with the challenges of globalisation and individuals with a consolidated pension to provide them financial independence and choice.
Guernsey Association Pension Providers (GAPP)
Admiral Park, Guernsey
Why Guernsey for pensions?
Why Guernsey for pensions?
Established centre of excellence for pensions
Offering a broad range of pension providers
From Bank-owned institutions to independent boutiques
Offering flexibility, cost-efficiency and pragmatic regulation
Guernsey’s pensions sector is supported by a mature ecosystem of expert providers such as legal, tax, accounting and actuarial advisers
Home of the pioneering ESG framework for pension providers
Corporate pensions
Guernsey is a leader in servicing pension plans for international businesses
Enabling international organisations to have a single pension plan for all their employees
From large multinationals to bespoke SME plans
Provides employers flexibility to create a plan for their specific needs
Why Guernsey for pensions?
Providing solutions in countries where little or no pension legislation exists
Helping attract and retain employees and delivering on their duty of care
Gaining economies of scale, simplicity and efficiency
Simple solutions to meet the challenges of globalisation
Case study
End of service benefit and savings plan
Profile: Middle East International School Group
Circumstances: This Group has seven international schools based in the GCC. The majority of their teachers are expatriates, who normally work two-year renewable contracts.
Employer: They have a successful business in a results-driven sector, and they want to continue to attract and retain the best teachers. However, they operate in a very competitive employment market and so they need to go that extra mile to differentiate themselves.
Employee: “As a teacher in demand, I must look at all my options to decide what works for me. Part of my decision-making process is what employee benefits my employer will provide. I intend to work for at least 10 years in the international schools’ sector and it is important I make the most of my time overseas. I will also not be paying into my home country system, so it’s important to save.”
Sharjah, United Arab Emirates
Case study
End of service benefit and savings plan -
Guernsey solution: The company introduced an international retirement and savings scheme, regulated in Guernsey, to deliver on their aim. They chose Guernsey due to its strong reputation of quality service and robust regulation.
They save regularly for their End of Service Gratuity so they will meet their liabilities. By saving regularly this helps with cash flow and the money is invested, so they benefit from investment growth, time and cost averaging. It is also off the company’s balance sheet and under trust for additional protection and governance.
In addition, for senior and critical staff, the company pays in an additional employer contribution. They provide a harmonised benefit throughout the group based on seniority and service. They have included a vesting clause so that the teachers must complete their contract term to receive the full value of the employer additional contribution value.
They’ve included a voluntary savings element and allow the teachers to pay what they want into their account so that they can efficiently save for future medium to long-term life events.
As all the expatriate teachers are in one plan, they can move to different schools and countries within the group, which provides great flexibility for the employer and employee.
Outcome: The school group is happy as they have established a stable teacher population with the added flexibility that they can move their resources around the group with minimal impact. They are meeting their employer regulatory commitments and also delivering on their duty of care. They also take comfort that their plan is regulated in such a highly rated jurisdiction.
The teachers are happy as they are benefiting from a cost-effective and efficient savings plan. They appreciate that their employer is going that extra mile and have told their professional friends to consider coming to work for the group. Teachers like the portability as they can move around the group and gain additional experience and continue to save via the plan.
Case study Mobile employees
Profile: A multinational pharmaceutical company has an impressive global footprint. The majority of their population are local nationals, for which the company provides local pension benefits. However, they have 6% of their population that are internationally mobile or working in countries where they will not retire.
Employer: Their core aim is to attract and retain their staff. They value their international mobile employees as they have a wealth of experience and expertise. They also actively encourage staff, as part of their development, to gain experience around the group.
They are conscious that they need to look after their people and make sure employees are not disadvantaged by working overseas.
Guernsey solution: They sourced an international plan, regulated in Guernsey, to help them deliver on their objective. The advantage of this type of plan is that they can structure it to suit their specific population needs.
The employer is happy as they have found a simple, cost effective and efficient way to provide a meaningful benefit to this niche population. They can also harmonise the benefits for all their mobile employees, so it’s nice and simple in terms of messaging and administration. They feel comforted that the plan is regulated in Guernsey, which has a strong reputation for a premier service.
The internationally mobile employees are happy as their employer is going that extra mile. Their employer understands the challenges of working overseas and has made it easy and efficient to save for retirement and not lose out. They feel valued and committed to the company that are delivering on their duty of care.
They have a consistent benefit in a single currency, so they have continuity as they move around the different locations of the group.
Case study
Small company with dispersed global employees
Circumstances: This company has under 15 employees who work remotely and are based over four continents. They want to look after their people and ensure they keep the experience within the company. They are a small company with limited HR resources, so they do not want to have to deal with multiple pension providers in multiple countries.
Employer: They want to help their employees save for their future. However, the plan has to be cost-effective and easy to administer and flexible enough that they can harmonise the benefits so they treat their people equitably.
Employee: They enjoy working for the company as they have the flexibility to work anywhere in the world. All they need is their laptop and good connectivity. They know it’s important to save for their future, as they cannot rely on any government benefit.
Guernsey solution: The company uses an international retirement and savings plan, regulated in Guernsey, to deliver their aims. Their employer contribution increases with length of service.
Within the plan they have also included a savings element. This is to encourage their employees to save for medium-term life goals such as marriage, house/land purchase, children’s education and longer term for their retirement. It’s an easy way to save via payroll.
The company runs a central payroll, so it’s quick and efficient. There’s minimal impact on resources as everyone has online access.
Outcome: The employer is happy as they are delivering their objectives and working through a simple structure that is easy to administer and cost-effective. They have peace of mind as Guernsey has a strong reputation for good service and strong, but flexible regulation.
The employee is happy that their employer is helping them to save for their future. The plan is portable, so it keeps pace with them and their laptop. They can save consistently in a single currency and have online access for visibility. They feel valued by their employer and the flexibility and benefits they provide.
Personal Pensions
Providing portability for internationally mobile individuals
Consolidated and consistent savings
Offering choice and control
Providing a foundation to financial independence
12 Why Guernsey for pensions?
Case study
A digital nomad
Circumstances: This digital nomad is a self-employed programmer/coder and helps develop software and websites. He loves that his job allows him the flexibility to travel the world and spend six months to a year in any one place, so he gets a deeper cultural experience.
Objective: As he’s working remotely, he’s conscious that he is not paying into his home country social security system. However, with governments increasing the retirement age and people living longer, he’s not relying on any government-based old age pension. He wants choice and control on when he’s going to stop working and where he will retire.
Guernsey solution: He has started paying into an international personal pension. His research showed that Guernsey provides strong regulation with a choice of providers and simple products, that are portable.
It is important for him to have a pension that is portable, so that he can take it with him wherever he’s based and have consistency. There is the added benefit that it rolls up and pays out gross, which gives him flexibility on where he will retire.
It can also accept payments from employers, which is great as sometimes he works with companies for the medium-term and his contractual terms include a pension payment
Cobo Bay, Guernsey
Key comparator info Guernsey
Principal pensions legislation
Regulation of pension providers
Pensions are legally defined and given separate authority to trusts, under The Regulation of Fiduciaries, Administration Businesses and Company Director etc (Bailiwick of Guernsey) law, 2020.
Pension providers are regulated under The Pension Scheme and Gratuity Scheme Rules and Guidance, 2021 (Pension Scheme Rules).
Tax approval regime contained in Income Tax (Guernsey) Law 1975.
Yes. Specific Pension Regulation of Providers and Plans introduced in 2017
MONEYVAL
ESG/Sustainability
Consumer protection
Pension scheme rules, which further enhance member protection
Fees and commission must be disclosed to pension plan members
Member of the International Organisation of Pension Supervisors
Number of pension providers/administrators
Positive MONEYVAL Assessment in 2025
Developed ESG Framework for the pensions sector in Guernsey
The Channel Islands Financial Ombudsman
Yes (introduced in 2017 and updated in 2021).
