Key Takeaways
- • Smart Pension and Mercer launched Mercer Smart Pension on 30 October 2023, 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, powered by Smart's Keystone digital platform, with Mercer's investment capabilities, governance support and retirement services.
- • Smart Pension's Master Trust exceeds £3bn in assets under management and serves over one million members and more than 70,000 employers.
- • The partners position the product as bringing large-employer-grade benefits and technology to SMEs, which Mercer says have been underserved by existing offerings.
- • 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, a business of Marsh McLennan (NYSE: MMC), today launched a new pension solution targeting the UK's 5.5 million small and mid-sized enterprises. The product, Mercer Smart Pension, brings together the Smart Pension Master Trust, built on Smart's digital-first Keystone platform, with Mercer's investment research, governance support and retirement services, according to the companies' announcement as reported by Pensions Age.
The partners argue that size, affordability and access to technology remain significant barriers to pension provision and related employee benefits for many UK businesses. Phil Parkinson, Head of Wealth and Investments at Mercer, said the firm heard frustration from SME clients who could not access the tools, support and investment research available to larger employers. He said Mercer combined its global investment research and experience in delivering global defined contribution products with Smart Pension's fintech solution to create 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 aim is to reshape how employers and employees think about retirement planning. The companies say the offering levels the playing field for smaller employers and provides technology comparable to that of an ecommerce app or digital bank.
Smart Pension, launched in 2015, reports that its Master Trust exceeds £3bn in assets under management, serves more than one million members and over 70,000 employers, and is backed by investors including Aquiline Capital Partners, Barclays, DWS Group, J.P. Morgan, Legal & General Investment Management and Natixis Investment Managers, among others. Mercer, which has approximately 25,000 employees across 43 countries, states that both companies are signatories to the Mansion House Compact announced in July 2023 by Chancellor of the Exchequer Jeremy Hunt.
The partners argue that size, affordability and access to technology remain significant barriers to pension provision and related employee benefits for many UK businesses. Phil Parkinson, Head of Wealth and Investments at Mercer, said the firm heard frustration from SME clients who could not access the tools, support and investment research available to larger employers. He said Mercer combined its global investment research and experience in delivering global defined contribution products with Smart Pension's fintech solution to create 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 aim is to reshape how employers and employees think about retirement planning. The companies say the offering levels the playing field for smaller employers and provides technology comparable to that of an ecommerce app or digital bank.
Smart Pension, launched in 2015, reports that its Master Trust exceeds £3bn in assets under management, serves more than one million members and over 70,000 employers, and is backed by investors including Aquiline Capital Partners, Barclays, DWS Group, J.P. Morgan, Legal & General Investment Management and Natixis Investment Managers, among others. Mercer, which has approximately 25,000 employees across 43 countries, states that both companies are signatories to the Mansion House Compact announced in July 2023 by Chancellor of the Exchequer Jeremy Hunt.
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