Navigating Pensions in 2026: Channel Islands at the Crossroads of Global Trends

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The international pensions industry is entering 2026 amid unprecedented change.

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The international pensions industry is entering 2026 amid unprecedented change. Regulatory tides are shifting, wealth is on the move globally, and technology is transforming client expectations. From my vantage point, for the Channel Islands, a renowned hub for pension and fiduciary solutions, I see both challenges and opportunities ahead. This article explores the key trends shaping our industry – from tightening compliance to the influx of high-net-worth individuals (HNWIs) – and what they mean for the Channel Islands’ pensions sector.

Enhanced regulatory scrutiny

Compliance has never been more front-and-centre. Around the world, regulators are raising the bar for transparency and due diligence in financial services, and pensions structures are no exception. 2026 brings a raft of regulatory impacts. From stricter reporting requirements, higher capital standards, and above all, more rigorous Know Your Customer (KYC) and anti-money laundering (AML) rules. From an industry perspective, strong compliance is not only a competitive advantage but a necessity for providing the best client service and experience possible. Firms that invest in comprehensive due diligence processes protect the Islands’ reputation and give comfort to clients and regulators alike.

A prime focus is on “Source of Wealth” verification: pension providers must now thoroughly document how clients earned their wealth, not just how funds are being invested.

Regulators require detailed documentation of how clients accumulated their wealth, whether through business ventures, inheritance, or investments. This trend is particularly relevant for HNWIs establishing pension structures in offshore jurisdictions.

The Channel Islands have implemented advanced due diligence processes to ensure compliance. This not only satisfies regulatory requirements but also builds client trust and reinforces the jurisdiction’s reputation for integrity.

HNWIs on the move: a surge in Global wealth migration

If one trend defines the current landscape, it’s the unprecedented mobility of wealth. HNWIs are relocating across borders in record numbers, driven by shifting political and economic winds. UK political developments have been a catalyst: after a series of tax reforms and proposals, many wealthy Britons feel their home country is less welcoming for their wealth. The result is what some commentators dub “WEXIT” – a wealth exodus from the UK. In 2025 alone, an estimated 142,000 millionaires were projected to relocate internationally, with the UK seeing a net outflow of about 16,500 HNWIs – the highest loss in the world[1]. This wave is expected to continue into 2026.

But it’s not just the UK. Wealth is flowing away from other high-tax or politically uncertain jurisdictions and towards those offering stability and fiscal friendliness. According to recent analyses, countries like France, Germany, and China are also experiencing millionaire outflows (due to factors like tax pressure or uncertainty), while “wealth magnets” such as Portugal, Italy, Switzerland, the UAE, and Singapore are enjoying net inflows. The Channel Islands are squarely on this map of wealth migration. Our Islands’ mix of safety, lifestyle, and financial benefits makes them an attractive landing spot, particularly for individuals coming from the UK and other parts of Europe.

Channel Islands: a safe harbour for wealth

Jersey and Guernsey offer significant tax advantages, including no capital gains tax, no inheritance tax, and low-income tax rates. These features make the islands attractive for pension planning, particularly for UK expatriates and international clients seeking efficient wealth preservation.

However, with these benefits comes increased scrutiny. The Channel Islands have taken steps to ensure compliance with global standards, implementing economic substance rules and enhancing transparency to maintain their status as reputable financial centres.

Technology, automation and use of AI in client onboarding

Technology is transforming client onboarding and relationship management in the pensions sector. What once took weeks, collecting documents, verifying identities, and setting up accounts, can now be completed in days thanks to secure digital portals, AI-powered ID verification, and automated KYC checks. This speed is crucial, especially for HNWIs who expect seamless, efficient service.

Beyond onboarding, AI and data analytics are enhancing how firms manage pension funds and engage clients. Tools like robo-advisory platforms, interactive dashboards, and chatbots support high-touch service at scale, while AI insights enable advisers to deliver more personalised, proactive guidance.

For us, investing in technology is about future-proofing. The next generation of clients demands digital convenience on par with Big Tech. Encouragingly, the Channel Islands are rising to the challenge and adopting fintech and RegTech solutions, benefiting from government and industry efforts to strengthen digital infrastructure. The sector is evolving rapidly, blending trusted fiduciary service with cutting-edge innovation.

Beyond 2026: other emerging trends to watch

Beyond the core themes, several adjacent trends are shaping the international pensions landscape and influencing the Channel Islands’ strategic direction.

ESG investing continues to gain momentum, with around 60% of large pension investors planning to increase allocations to sustainable assets[2]. The Channel Islands are responding with ESG-screened pension portfolios and specialist sustainable fund offerings, reinforcing their reputation as responsible financial centres.

While HNWIs remain central, a growing segment of internationally mobile affluent professionals is driving demand for portable pension solutions. These individuals, often with careers spanning multiple countries, seek to consolidate their retirement savings into streamlined offshore structures. The Channel Islands are well-placed to serve this demographic with efficient, cost-effective offerings alongside their bespoke services for the ultra-wealthy.

Finally, macroeconomic conditions are set to shape pension strategies in 2026. With interest rates stabilising after earlier spikes, defined benefit schemes may see improved funding levels and renewed interest in de-risking options like insurer buy-outs. For Channel Islands providers, especially those managing multinational or expatriate schemes, staying agile and responsive to market shifts will be key as global equity performance continues to influence client decision-making.

The outlook for the Channel Islands

In summary, the international pensions industry in 2026 is being reshaped by forces of regulation, migration, and innovation. The Channel Islands stand at the intersection of these forces – a sought-after port in the storm for global wealth, but one that must continuously reinforce its seawalls of compliance and service excellence. We have weathered decades of change by adapting, and the current wave of trends is another opportunity to do so.

The key for Channel Islands pension providers will be to remain agile and client-centric. That means staying ahead of regulatory changes rather than reacting to them, doubling down on the unique advantages of our jurisdiction, and embracing technology and partnerships to enhance client offerings. It also means never losing sight of the personal touch.

How we support long-term financial goals

Concept Group (part of the Belasko Group) take pride in ensuring that we are consistently at the forefront of evolving trends in the market. Being committed to constant innovation within the fiduciary and retirement planning space for over 20 years means that we have always been able to offer the most versatile and beneficial products to our clients and partners. We specialise in delivering tailored international pension solutions written under both contract and trust that meet the ever changing and often complex needs of our clients regardless of asset type, value or jurisdiction.

Our team combines deep technical expertise with a commitment to customer service excellence, ensuring that we place our clients at the centre of everything we do and that they benefit from secure, compliant, efficient, and forward-thinking structures. Whether you're planning a cross-border retirement strategy or seeking to consolidate international pension assets, we’re here to help. Get in touch with us to explore how we can support your long-term financial goals.

Sources

[1] The Tax Times: The Global Millionaire Migration Wave of 2025: Winners, Losers, and the Shifting Wealth Map

[2] Global pension trends: What to expect in 2026 | AXA IM Corporate