Key Takeaways
- • Smart Pension and Mercer, a business of Marsh McLennan (NYSE:MMC), launched Mercer Smart Pension, a new workplace pension solution aimed at the UK's 5.5 million small and mid-sized enterprises (SMEs).
- • The offering combines the Smart Pension Master Trust, built on Smart's digital-first Keystone platform, with Mercer's investment capabilities, governance support and retirement services.
- • Mercer positions the product as a low-cost, feature-rich platform that gives smaller employers benefits comparable to those available to larger companies.
- • Both firms are signatories to the Mansion House Compact, announced in July 2023 by Chancellor Jeremy Hunt.
Summary
Smart Pension, one of the UK's leading workplace pension providers, and Mercer, the global consulting and investments firm and a business of Marsh McLennan (NYSE:MMC), launched a new pension solution on 30 October 2023 targeting the accelerating demand for modern retirement technology among the UK's 5.5 million SMEs. The product, Mercer Smart Pension, pairs the Smart Pension Master Trust with Smart's award-winning digital-first Keystone platform and Mercer's market-leading investment capabilities, governance support and retirement services.
According to the companies, size, affordability and access to technology have been significant barriers to pension provision for many UK businesses and their employees. Mercer Smart Pension is designed to help employers enhance financial security, long-term planning and personal wellbeing for a wide range of UK workers, offering benefits comparable to those large employers provide along with technology comparable to a modern ecommerce app or digital bank.
Phil Parkinson, Head of Wealth and Investments at Mercer, said the firm heard frustration from small and mid-sized businesses that could not access the tools, support and investment research available to larger employers. He said Mercer combined its global investment research and experience delivering global DC products with Smart Pension's fintech solution to provide a low-cost, feature-rich pension and benefits platform.
Jamie Fiveash, CEO of Smart UK, described the launch as a "game-changer for pension provision in the UK" and said the combination of Mercer's client focus and Smart's technology would offer SMEs an exciting proposition. He added that the aim is to reshape how employers and employees think about retirement planning and to democratise financial wellbeing.
Both companies are signatories to the Mansion House Compact, announced in July 2023 by Chancellor of the Exchequer Jeremy Hunt, and state that they aim to ensure demand from employers for modern retirement technology is met.
According to the companies, size, affordability and access to technology have been significant barriers to pension provision for many UK businesses and their employees. Mercer Smart Pension is designed to help employers enhance financial security, long-term planning and personal wellbeing for a wide range of UK workers, offering benefits comparable to those large employers provide along with technology comparable to a modern ecommerce app or digital bank.
Phil Parkinson, Head of Wealth and Investments at Mercer, said the firm heard frustration from small and mid-sized businesses that could not access the tools, support and investment research available to larger employers. He said Mercer combined its global investment research and experience delivering global DC products with Smart Pension's fintech solution to provide a low-cost, feature-rich pension and benefits platform.
Jamie Fiveash, CEO of Smart UK, described the launch as a "game-changer for pension provision in the UK" and said the combination of Mercer's client focus and Smart's technology would offer SMEs an exciting proposition. He added that the aim is to reshape how employers and employees think about retirement planning and to democratise financial wellbeing.
Both companies are signatories to the Mansion House Compact, announced in July 2023 by Chancellor of the Exchequer Jeremy Hunt, and state that they aim to ensure demand from employers for modern retirement technology is met.
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