Mercer has partnered with technology provider EV to upgrade its pension modeller within its Mercer Money app, to provide a more holistic view of members’ retirement outlook.
EV will deliver DC pension forecasting capability and financial APIs to enhance the capabilities for master trust members using this app.
Mercer says this is the ‘digital front door’ enabling members to access their online accounts.
Using open banking capabilities, Mercer Money provides money management functionality and allows users to view their finances holistically — including earnings, savings, pensions, borrowing, and assets.
Alongside the app’s existing functionality, the enhanced modeller will add a sophisticated, intuitive tool to help Mercer Master Trust members better understand their retirement outlook. It breaks the modelling process down into simple, bite-sized chunks that members can work through, one question at a time.
Powered by EV’s enhanced modelling capabilities and four of its Software-as-a-Service (SaaS) retirement APIs, the new tool shows members their pension savings in terms of projected income based on current pot size and contributions. It invites them to build on that at their own pace, gradually bringing other pension pots and assets into the picture. The outputs are compared against the PLSA living standards or another benchmark of the member’s choosing.
Further APIs will be added over time, ensuring that the modeller continues to evolve, allowing members to build an increasingly detailed picture of their future.
Mercer head of proposition Stephen Coates says: ”Sound decision-making requires a basic level of engagement. But building engagement is really about building trust.
“The approach we have taken with EV aims to encourage greater interaction with members’ financial information by making the process of learning easier. By breaking down potential choices into simple questions and allowing members to explore what it means for them at their own pace, we can help them understand the impact of their decisions and the trade-offs they may need to make. We’re aiming to build better financial decision-making, one simple question at a time.”
EV chief commercial officer Gary Wheeler adds: “With the upgraded modeller being accessed from their member app, Mercer is enhancing their approach to the issue of low engagement among pension scheme members by focusing on improving overall wellbeing and financial outcomes.
“It is a prime example of how EV’s range of over 40 flexible, configurable APIs, based on our proven calculation engine, empowers financial institutions to incorporate innovative solutions across retirement, investment, risk suitability and holistic financial planning within their existing technology.”