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Spoiler: it isn’t luck. Mercer’s analysis of retirement readiness (also known as retirement adequacy) shows a clear link between better projected retirement outcomes and joined-up data, timely nudges and member engagement. In the Mercer Master Trust report ‘The retirement challenge: Are we saving enough?’ the evidence is clear, when members engage and see the full picture of their finances, outcomes improve.
The national picture
Government analysis presents a challenging picture:1
- Only 9% of working-age people are projected to reach or exceed the Pension UK’s comfortable retirement living standard (£43,900 per annum for an individual).
- 13% won’t achieve the minimum income needed for a basic standard of living (£13,400 per annum for an individual).
In short, most people aren’t on track for a comfortable retirement living standard. That isn’t just a retirement problem — it’s a workplace problem. Delayed retirements, succession headaches and lower engagement can arise when staff can’t afford to stop work. For Mercer Master Trust members:2
- 45% are on track to achieve between the minimum and moderate Retirement Living Standards
- 29% are already on track to exceed the comfortable standard
Connecting all assets for better outcomes
So, what’s driving Mercer’s better results? It’s partly about the demographic. The Mercer Master Trust is likely to have a greater proportion of higher-paid members than some other master trusts. But that’s only part of the picture. It’s also about connections. Members don’t hold their future in a single pension pot. ISAs, other pensions, savings and investments all have a part to play. Mercer’s Mercer Money app, with open finance capabilities, lets members connect accounts to see their complete financial picture.
- 99% of Mercer Master Trust members who connect their other pension pots through Mercer Money are on course to achieve, at least, the minimum retirement living standard.3
- 74% of pension-connected members are exceeding the ‘comfortable’ standard, demonstrating the tangible benefits of holistic, connected planning.4
“When people can see the whole picture, they act, and the numbers show it. Our members who actively connect their financial data and engage early are better positioned to meet or exceed the Pensions UK Retirement Living Standards,” said Paul Allen, DC Strategy and Commercial Lead, Mercer. “We help members understand their own data and financial position, empowering them to make better decisions and achieve better outcomes through our innovative tools, personalised coaching, and ongoing education initiatives.”
There’s another revealing nugget in Mercer’s analysis; for anyone assuming that younger members will be worse off at retirement then their older counterparts, over half (53%) of Mercer Master Trust members under 30 are on track for a comfortable retirement.5 For context, national projections for people retiring in the 2060’s put comfortable outcomes at about 9%.6 The takeaway? Early engagement, and good nudges, pay off.
“We encourage in-house pension teams and scheme sponsors to benchmark their workforce against the Retirement Living Standards,” continues Allen. “As our data show, small steps early on make a big difference later. Supporting members with better data use, smarter tech, and personalised engagement can make a real impact.”
While national statistics show a widespread under-saving problem, Mercer’s report, ‘The retirement challenge: Are we saving enough?’, demonstrates that continuous engagement and clearer insights help members beat the odds. Better data, smarter tech and personalised engagement move the needle, better supporting individuals on their path towards a secure retirement.
To read more articles from Mercer visit the content hub on Corporate Adviser – here.
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1 Analysis of Future Pension Incomes 2025 – GOV.UK
2 Pension adequacy. Mercer Master Trust results July 2025
3 Pension adequacy. Mercer Master Trust results July 2025
4 Pension adequacy. Mercer Master Trust results July 2025
5 Pension adequacy. Mercer Master Trust results July 2025
6 Analysis of Future Pension Incomes 2025 – GOV.UK