Smartpath Changes for Members
(5 min read)
The SmartPath Target Drawdown strategy is the default investment strategy for Fund members and is designed for those wishing to take income drawdown at retirement. The SmartPath Target Cash strategy is an additional strategy available for selection by Fund members and is designed for those wishing to take a cash lump sum at retirement. The Trustee has delegated the design of these strategies to Mercer Workplace Savings (“MWS”).
SmartPath Target Drawdown changes
Following a recent Mercer SmartPath Investment Strategy Review undertaken by MWS, changes are being made to the SmartPath Target Drawdown strategy for members retiring after 31 December 2025. If your target retirement date is on, or before, 31 December 2025, you will continue to be invested in line with the previous strategy. The Trustee periodically reviews the range of investment options made available to you as a member to ensure they continue to be in line with best practice design and are comfortable with these changes.
The change being made by MWS is to reduce the Cash allocation within the SmartPath Target Drawdown strategy in the years leading up to retirement and replacing this with an increased allocation to the Mercer Diversified Retirement Fund. MWS have taken this decision as the new allocation will be better positioned to provide moderate long-term capital growth, for those who intend to access flexible income drawdown at retirement. This change will take place inside the target retirement funds and will only impact members whose target retirement date is after 31 December 2025. You should ensure that your target retirement date correctly reflects the date you intend to retire. You can check your current target retirement date and make changes by logging into Mercer OneView.
Further details about how your investments will change over time while invested in the default strategy (before and after these changes) are available in the Fund’s Investment Guide. You can check if you are invested in the default strategy by logging into Mercer OneView.
SmartPath Target Cash changes
Following a recent Mercer SmartPath Investment Strategy Review undertaken by MWS, changes are being made to the SmartPath Target Cash strategy for all members. The change being made by MWS is to replace the Mercer Passive UK Corporate Bond Fund allocation within the SmartPath Target Cash strategy in the years leading up to retirement with an allocation to the Mercer Diversified Retirement Fund. This change was made on 18 March 2024.
Further details about how your investments will change over time while invested in the SmartPath Target Cash strategy (following the above change) are available in the Fund’s Investment Guide. You can check if you are invested in the SmartPath Target Cash strategy by logging into Mercer OneView.
If you have any questions about Mercer OneView, please contact the Mercer OneView Contact Centre on 0345 600 0229 (9.00am to 5.00pm. Monday to Friday, except public holidays).
For current colleagues you can access Mercer OneView via the single sign on link in the My Quick Links section in Colleague Connect. For deferred members you can access OneView here, if you need to request a new log in passcode, please email: contact.mercer.com
We encourage you to regularly review your investment choices, particularly as you get closer to your target retirement age, to ensure they remain aligned with how and when you intend to access your pension savings. For details of the various options available to you at retirement, you should read the Fund’s Retirement Flexibilities Guide.
Additionally, in the lead up to retirement you will have access to the Pensions Decision Service (“PDS”), which will provide you with a dedicated Retirement Relationship Manager on hand to help with any questions you may have in the approach to retirement.
Important Notes
Managing your retirement savings properly is important and there is a lot of information for you to consider. Before you make any decisions about accessing your DC savings in the Fund, it is strongly recommended that you seek professional financial advice from a FCA-regulated financial adviser. You can find a regulated financial adviser in your area by visiting https://www.moneyhelper.org.uk/en/getting-help-and-advice/financial-advisers/choosing-a-financial-adviser. You should always check the charges and specialist areas of an adviser before appointing them. You can also contact the Mercer Private Wealth team here.
First published March 2024