Mercer accelerates pension innovation with the acquisition of Engage Smarter’s tech and talent

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The world of technology is evolving rapidly, reshaping expectations across every industry, including workplace pensions. In response, Mercer has taken a decisive step by acquiring the technology, team and talent of Engage Smarter, a specialist in artificial intelligence for financial services. This move supports Mercer’s objective of integrating artificial intelligence within its workplace pension products.

This strategic move signals Mercer’s commitment to using AI as a foundational tool designed to meet the evolving needs of clients and members. The Mercer Master Trust (MMT) has already collaborated with Engage Smarter to develop its AI Pension Guidance Agent, with a beta version set to launch later this quarter. This AI tool allows members to engage in natural, personalised conversations about their pensions, tailored to their individual circumstances. 

Trust and safety: The cornerstones of Mercer’s AI strategy

AI is becoming a common tool to support personal finance, with over 28 million UK adults using it to manage their money.¹ Nearly four in 10 (39%) use AI for future financial planning, including pensions.² Yet trust remains a significant barrier. More than 30%³ of UK adults express concerns about AI-generated content, with 83% worried about data privacy and 80% about receiving inaccurate or outdated information.⁴

Mercer directly addresses these concerns by combining AI’s capabilities with human expertise and governance. This approach has been fundamental to the development of the AI Pension Guidance Agent which uses carefully curated, regularly updated Mercer pension data, avoiding unverified external sources. For key calculations like retirement forecasts, it relies on trusted tools which have been rigorously tested before member interaction.  

This design allows the MMT to strive for greater accuracy, transparency, and security reinforcing trust with members. 

Phil Parkinson, head of wealth at Mercer UK, explains, “We have structured our business to innovate safely around AI with a strategic focus on trust. With the technology, team, and talent from Engage Smarter now part of Mercer we are working to steadily but purposefully transform our workplace pension products, embracing change to deliver value to our clients and members in a way they can trust.”

This structural and strategic readiness positions Mercer to lead the safe integration of AI across its pension products, ensuring innovation is purposeful and controlled.

Trusted innovation

Mercer’s integration of AI expertise and technology into its inhouse team marks a pivotal moment for its workplace pension products, they aren’t just developing an AI agent they are future proofing their products and business. By doing so, Mercer is laying the foundation for a new era of pension innovation, one that balances cutting-edge technology with the trust and reliability clients and members expect.

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^{1 Over 28 million adults now using AI tools to help manage their money – Lloyds Banking Group plc
2 Over 28 million adults now using AI tools to help manage their money – Lloyds Banking Group plc
3 What the UK Thinks About AI: Building Public Trust to Accelerate Adoption
4 Over 28 million adults now using AI tools to help manage their money – Lloyds Banking Group plc}