Putting your defined contribution pension on track

More people are enrolled in UK defined contribution pension scheme and more money is invested in those schemes than ever before. As a trustee or an employer who sponsors a DC pension plan, you face an increasing array of requirements and risks as you try to secure the best outcomes for your members with scarce resources.

In turn, your members need more help. Most DC pension scheme members are not saving enough for retirement and many do not understand the benefits they receive. The rising cost of living is exacerbating financial pressures on members.

Many defined contribution pension schemes have failed to keep up with changes in the industry since auto-enrolment began in 2012 and pension freedoms took effect in 2015.

The complexity of running a DC pension plan means many trustees and sponsors are over whelmed. We are here to put you on track and help you focus on the most important issues and best outcomes for your members.

Read more about our defined contribution services and solutions

Mercer has a full range of services and solutions to help you put your defined contribution pension scheme on track. From expert human insight to proprietary products, we aim to help you reduce risk, increase value and secure better outcomes for your members.

  • Mercer Smart Pension

    Mercer Smart Pension brings together Smart Pension’s technology-led, digital-first master trust and Mercer’s market-leading investment capabilities, governance, and retirement services.

  • Mercer DC Master Trust

    Outsourcing your workplace pension scheme to the Mercer DC Master Trust can deliver cost and time savings for your business and opportunities to improve outcomes for your people.

  • DC consulting

    We help defined contribution (DC) pension schemes improve communication, governance and investment to enhance outcomes for your members, manage risk and build your members’ confidence in their DC pension scheme. As DC consultants we put members first in everything we do.

  • Financial wellbeing

    Employee financial wellbeing is increasingly important for organisations as the cost of living increases. Mercer’s Financial Wellbeing Index helps you understand how you measure up and where you should direct your resources to provide support for your people in a more holistic way.

  • SmartPath

    Mercer SmartPath is a defined contribution investment strategy that helps your pension scheme members cut through complexity to help achieve a retirement outcome that suits their lifestyle and needs.

  • DC MOT

    Our DC MOT is a comprehensive pension audit that checks whether you and your members are getting good value when company and personal finances are under strain.

  • Mercer Money

    Our financial wellbeing app uses open banking technology to give your employees a holistic, near real-time view of their finances. It offers users personalised alerts and insights, and modelling and budget-setting tools to help them manage their money.

  • Retirement Readiness Index (RRI)

    Our Retirement Readiness Index is a DC pension review that puts member outcomes first. RRI conducts a retirement assessment for each member and suggests actions that could put them on track for a comfortable lifestyle when they stop work.

  • Governance

    An effective system of pension trustee governance is at the core of every well-run pension scheme. Ensuring that you have all of the policies and procedures in place to achieve this will lead to better outcomes for your members and give you more time back to focus on your strategic aims.

  • Responsible Investment Total Evaluation (RITE)

    Our Responsible Investment Total Evaluation (RITE) shows how well you are integrating ESG considerations into your decisions – and enables you to take action to improve.

Helping trustees and employers put member outcomes at the heart of their DC pension.

Interlinked issues for employers, trustees and members include:

  • Employers

    • With businesses facing rising costs, you may be getting poor value from your DC pension scheme or paying too much in charges
    • Auto-enrolment processes for many schemes have not kept up with changes, leaving you exposed to financial penalties and reputational risk
    • Does your DC pension arrangement add value to your reward and benefits package, and help with retention and succession planning?

  • Trustees

    • Have you got the time, resource and expertise to deal with the burden of governance requirements and regulation?
    • Do you spend the right amount of time adding value through your oversight vs worrying about compliance?
    • Are you agile and informed enough to get the investment returns needed by your DC plan members in a volatile, complex environment?

  • Members

    • Do your members have access to the support and resources they need to help them make the right choices?
    • Ensuring employees understand their DC pension scheme and associated benefits can increase the perceived value of the DC plan
    • As employees look to their employers for support and advice, you may be able to help them pay less tax through a salary exchange
To deal with these challenges you need a coherent strategy for your DC pension plan. Our teams are here to help you establish and implement a plan that will put you and your members on track.

The complexity of running a DC pension scheme means many trustees and sponsors are overwhelmed. We’re here to put you on track.
Gail Philippart

UK DC Consulting Leader

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