Smart Pension has surpassed £10bn in assets under management, a milestone the provider said reflects its growth since launching in 2014 following the introduction of auto-enrolment.
The master trust now serves around 2 million members and 100,000 employers, placing it above the government’s proposed £10bn scale threshold for defined contribution schemes, well ahead of the 2030 target date.
Smart Pension said growth has been supported by regular member contributions, pension scheme consolidations and its proprietary Keystone technology platform, which underpins the administration of the scheme.
The provider has also expanded its investment strategy, including increasing exposure to private markets within its default fund, and recently launched a new brand identity as it targets further growth.
Minister for Pensions Torsten Bell says: “We know our fragmented pensions system has meant people’s savings are not working hard enough. The Pensions Schemes Act is helping change that, supporting a pension landscape made up of bigger and better pension schemes that can ensure more of today’s workers have a comfortable retirement.”
Smart co-founder and group CEO Andrew Evans says: “We believe technology can fundamentally transform the pensions industry. It has already enabled us to grow rapidly and build one of the UK’s largest defined contribution pension funds, alongside an international technology business, in just over a decade. As the UK pensions market approaches a trillion pounds in assets, it urgently needs the same technological overhaul that utilities and other sectors have undergone in recent years. By replacing decades-old legacy systems, we can make saving simpler for millions of people, unlock significant value across the industry, and champion UK investment.”
Smart UK CEO Jamie Fiveash says: “Reaching £10 billion AUM is a key milestone and increasingly important given the regulatory focus on scale. However, what underpins this success is our unparalleled focus on innovation to deliver an exceptional service experience, low costs and net return performance for our customers. This is what has got us to where we are today and what will get us to our next phase of high growth.
“We are very excited about the changes laid out in the Pensions Act, which place us in a great position for continued strong organic growth alongside many emerging acquisition and partnership opportunities as the market consolidates at greater pace.”
