Smart Pension has partnered with Mercer to launch a new pension proposition aimed at the SME market.
The offering – Mercer Smart Pension – combines the Smart master trust with Mercer’s investment capabilities, governance support and associated retirement services, which include wellbeing options.
There are now 5.5m SME s in the UK, but their size and budget can restrict options when it comes to pension provision for staff and related employee benefits.
Mercer Smart Pension claims it will address this issue, by offering the same same benefits that employees in larger companies enjoy, as well as the technology employees would expect from an ecommerce app or digital bank. This new offering will use the same Keystone technology that underpins the main Smart Pension master trust.
Mercer head of wealth and investment Phil Parkinson says: “Speaking to small and mid-sized businesses and their employees, we heard frustration from many clients who were not positioned to benefit from the tools, support and investment research larger employers can access.
“Knowing Smart Pension’s digital and fintech credentials, we recognised an opportunity to bridge this gap. Mercer has combined the strength of its global investment research, experience in delivering global DC products and consulting with a fintech solution from Smart Pension to provide a low-cost, feature-rich pension and benefits platform. For a largely overlooked section of the UK economy.”
Smart UK CEO Jamie Fiveash adds: “Our aim is to reshape how employers and employees think about retirement planning. By combining our expertise with Mercer we are democratising financial wellbeing and setting a new standard for the industry.”
Smart Pension and Mercer are closely aligned in their aim to open up the full potential of digital retirement technology, and both are signatories to the Mansion House Compact announced in July 2023 by Chancellor of the Exchequer, Jeremy Hunt. The two companies aim to ensure that the accelerating demand for modern retirement technology amongst employers is met.
Fiveash described this partnership as a “game-changer” for pension provision in the UK.
