Mercer is partnering with Hub Group for the launch of Destination Retirement, an automated retirement service, that will be available to Mercer Money customers and savers in the Mercer Master Trust.
Hub is owned by Just, which pioneered mass delivery of workplace pensions at-retirement guidance through TOMAS a decade ago.
The service is understood to give full advice across all assets, not just pension assets like some automated services, and incorporates partner’s assets within algorithm computations.
The service aims to bring down the cost of advice to those sections of the workforce currently poorly served by advice that is out of reach in cost terms.
Mercer partner Paul Goodwin says: “We are pleased to be extending our relationship with Hub and to introduce Destination Retirement to Mercer Money users. Advice at retirement and the potential for better outcomes it brings should be available to the many, not the few. The digital advice journey through Destination Retirement enables this.”
Hub Group director Stephen Lowe says: “I’m pleased to confirm Mercer has selected Hub Group’s innovative fintech solution, Destination Retirement, to provide automated regulated advice to pension scheme members of its corporate clients.”
FTRC director Ian McKenna says: “This is a watershed moment for the workplace savings industry. Destination Retirement is a leading edge example of the future of financial advice, it shows how millions of consumers who have been unable to afford the guidance and advice they need, can from now on be supported and make better financial decisions, which will ultimately improve the quality of their lives. It is hard to overstate the positive impact tools like this can have on not just the industry, but society as a whole. If millions more people have more money in retirement because they have been better advised the economic benefit should flow through to the whole country.
“Mercer should be applauded for implementing this as part of their Master Trust offering, it throws down a challenge to all other workplace pension providers”