A defined contribution investment strategy that delivers for members

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.

An investment strategy that works for you and your members

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:

  • incorporate Mercer’s investment beliefs throughout the design and implementation of SmartPath.
  • allocate to highly rated investment managers identified by Mercer’s market leading manager research team.
  • harness Mercer’s strategic investment research, including on portfolio construction and responsible investment.
  • incorporate the consideration of environmental, social and governance factors throughout.

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.

How Mercer SmartPath works to make pension investing simple

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.

Step 1

You decide which destination is most appropriate for your scheme’s members and this is selected as the default investment strategy.

Step 2

Members are invested in a growth fund dynamically managed by Mercer which aims for long-term capital growth.

Step 3

Employees then select their desired outcome as they approach retirement and are better equipped to make this choice.

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.

Pension freedoms have given your members more retirement income options but with choice comes complexity. Mercer SmartPath helps chart a clear course for your members towards the option that is right for their individual lifestyles and needs.
Jane Walker


Reviewing your scheme’s investment strategy

Could your DC pension scheme benefit from help with a future-proofed investment solution for your members? Here are some points to consider.
  • Are your members on track for the retirement outcomes they hope for?
  • Have you got the time and resource to help your members reach their goals?
  • Has your DC scheme established investment beliefs to guide it through mounting regulation and requirements?
  • Does responsible investment form a key pillar of your DC scheme approach and broadly align with corporate responsibility policies?
  • Can you match Mercer’s ability to select leading investment managers to produce good returns for your members?
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.
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