Pensions guidance helps your members make good retirement choices

Choosing when and how to take our pension is one of the biggest financial decisions we make. Pension freedoms have given members more options — but flexibility also creates complexity and risk.

Pensions guidance can benefit trustees, employers and members

It can be difficult for trustees and employers to support scheme members because they may not know what to offer and how best to offer it. The traditional approach has been to appoint a financial advisory practice. However, costs can be high for all parties.

For members there can be a lack of understanding of what their pension means to them and confusion about what their pension can offer. This raises the risk that members may select an option that isn’t correct for them.

That’s why trustees and employers are increasingly seeking support and guidance to help their scheme members make the right decisions.

Mercer’s approach to pensions guidance

To help members achieve the outcome that is right for them we offer a range of guidance on a one-to-one basis. This can follow on from education sessions they may have taken with other members. We also have some specific solutions that support the retirement journey.

The process

  • Inform

    Members of their options at retirement

    By delivering a structured and personal call with a dedicated retirement relationship manager

    Cleary explaining the options available to members to ensure a fuller understanding

  • Identify

    Other options that members might wish to explore further

    By highlighting important considerations that members should be aware of

  • Enable
    Members to take the next steps toward a retirement that is the right one for them

Pension Decision Service – how we can help

Mercer’s Pension Decision Service provides information and guidance to pension scheme members about the options available to them when considering their retirement.

Members have a tailored call with one of our retirement relationship managers who will talk them through both the options available to them from their scheme, and the alternatives, if appropriate, outside of the scheme.

We want to ensure that after speaking with a retirement relationship manager members are in a position to make a more Informed decision about their retirement.

Feedback from our customers

The below figures are from March 2022 to February 2023, 69% of members answered at least one question.
  Scores out of 5  
Information was provided in a way that was easy to understand 4.48
Questions were answered fully
Likelihood of recommending to a friend or colleague 4.49
Confidence in making an informed decision 4.52
Overall average rating 4.53

The annuity problem...

The annuity market is complex and always moving as providers adjust rates.

Scheme trustees are required to have in place arrangements to secure an income for their retiring members. This can be a time-consuming and potentially costly process.

Employees and direct clients may not be aware of enhancements potentially available to them.

Our annuity solutions

Mercer’s annuity service provides a whole of market non-advised annuity service to pension scheme members, trustees and directly to individuals, by delivering fully researched and individually tailored solutions.

The annuity proposition

Trustees: For Defined Benefit Scheme Trustees, we will research the rates available on the open market to obtain a rate for securing an annual income tailored to the Scheme Rules. For Defined Contribution Schemes, the same research will ensure that their members take advantage of the rates available from the whole annuity market, including where higher rates may be obtained for certain health conditions.

Direct: We will work directly with individual clients to tailor their annuity purchase to their needs, including reviewing the whole of the annuity market, including where higher rates can be obtained for certain health conditions.

Scheme: Working with scheme administrators we will provide them with figures reflective of those available from the annuity market for them to forward to their scheme members as part of their retirement pack.

Please get in touch for more information.

Related products for purchase
Related solutions
Related insights
Related podcasts
Related events
Related case studies