Mercer has partnered with financial services technology provider EV to deliver the defined contribution (DC) forecasting capabilities and financial application programming interfaces (APIs) needed for its upgraded pension modeller.

The modeller sits within the Mercer Money app, which is designed to act as a "digital front door" for member’s online accounts, and is used predominantly by Mercer Master Trust members.

The app uses open banking capabilities to provide money management functionality and allows users to view their finances holistically, including earnings, savings, pensions, borrowing, and assets.

However, the enhanced modeller is expected to add an "intuitive" tool to help Mercer Master Trust members better understand their retirement outlook, breaking the modelling process down into bite-sized chunks that members can work through.

Powered by EV’s modelling capabilities and four of its software-as-a-service retirement APIs, the new tool shows members their pension savings in terms of projected income based on current pot size and contributions.

It also invites members to build on that at their own pace, gradually bringing other pension pots and assets into the picture, before comparing these outputs against the Pensions and Lifetime Savings Association's Retirement Living Standards, or another benchmark of the member’s choosing.

Further APIs are set to be added over time, to ensure that the modeller continues to evolve, allowing members to build an increasingly detailed picture of their future.

Commenting on the appointment, Mercer head of proposition, Stephen Coates, said: ”Sound decision-making requires a basic level of engagement. But building engagement is really about building trust.

"The approach we have taken with EV aims to encourage greater interaction with members’ financial information by making the process of learning easier.

“By breaking down potential choices into simple questions and allowing members to explore what it means for them at their own pace, we can help them understand the impact of their decisions and the trade-offs they may need to make.

“The more they explore and find it easy, and the more times they receive relevant insight, the more confident they will be to interact again, building trust in the tool, the product and their own decisions. We’re aiming to build better financial decision-making, one simple question at a time.”

Adding to this, EV chief commercial officer, Gary Wheeler, said: “With the upgraded modeller being accessed from their member app, Mercer is further enhancing their approach to the issue of low engagement among pension scheme members by focusing on improving overall wellbeing and financial outcomes.”

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