Your defined contribution (DC) pension savers have more options available after the introduction of pension freedoms in 2015. Mercer SmartPath is our delegated DC solution that makes investing for retirement simple for members and aims to deliver better overall outcomes.
Mercer SmartPath enables you to have confidence that your DC scheme members are in safe hands with a defined contribution investment strategy based on our experience, best ideas and ability to deliver value.
To achieve this, we:
Your members benefit from an investment strategy that specifically addresses their preferred style of retirement income. Mercer SmartPath offers glidepaths targeting cash lump sum, annuity purchase and income drawdown.
Mercer SmartPath provides controlled choice for investing to retirement while delivering appropriate investment strategies for each of the three at-retirement options – cash, drawdown or purchasing an annuity.
Here’s how it works:
Mercer SmartPath investment strategies will initially invest in higher risk, higher potential growth investments when your members are more than eight years from retirement. During the eight years leading up to retirement, the Mercer SmartPath strategies will automatically and gradually switch members' investments into lower-risk funds designed to help them target the type of benefit they want to take on retirement. Since 2015, members have been able to stay invested after they retire and flexibly take income (or draw down) from their pension savings. Some members may choose to take all their pension savings in cash or to buy an annuity. SmartPath offers alternative glidepaths to support these members. Members can change their choice of Mercer SmartPath strategy at any point and can invest across different Mercer SmartPath options.
Mercer SmartPath is a pre-built solution available on a delegated or advisory basis.
Could your DC pension scheme benefit from help with a future-proofed investment solution for your members? Here are some points to consider:
If you are not sure the answer is yes to these questions, Mercer SmartPath could provide you and your members with the support you need.
Get in touch to learn more about our retirement income strategies solutions.