Mercer extends workplace savings product with enhanced annuity terms

Mercer has expanded its workplace savings product by offering enhanced annuity terms to scheme members through a partnership with The Open Market Annuity Service.

Employees will be able to submit medical information online, by phone, or via a tailored questionnaire to identify the most appropriate annuity on the open market, based on personal health and lifestyle factors. The difference in retirement income could be up to 40% more than the standard offer from the existing pension provider.

Alan Whalley, UK chief executive officer of Mercer, said: “We have responded to demand from trustees and employers for a service that delivers excellent results to members at a lower cost. 

“We are confident that this new arrangement will make a significant difference, putting the opportunity for enhanced retirement income within reach of all scheme members.

“Up to now, corporate provision has lagged behind the individual market, where there is often an adviser providing support. 

“We are now bridging that gap so organisation’s schemes can enable all their members to search the market and secure the best deal on offer for their circumstances.”

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