Retirement fintech provider Smart is launches its pensions business in the US today.
Smart already offers a master trust in the UK, which now runs over 70,000 retirement plans on it.
The UK-based company says its technology is purpose-built for the pooled employer plans (Peps) offered in the US, and the facilitation of lifetime income in retirement, which is mandated under the new Secure Act.
These products will be launched in 2021, when this Act comes into force.
Smart will be led by US CEO Jodan Ledford, a US retirement plan veteran who most recently was LGIM’s America’s chief client officer, where he oversaw an increase from $30bn to $210bn in assets under management.
Ledford says: “Retirement savings in our country is in a state of flux – three out of 10 Americans have decreased or stopped their retirement savings in the coronavirus pandemic and more than 38 million US households do not own any retirement account assets.
Ledford says that the new act provides an opportunity for providers to help close this coverage gap.
“With our global platform, we have already shown how we can expand retirement access by making it easy for even the smallest employers to offer cost-efficient retirement plans.”
He adds that Smart’s cloud-based technology is designed to make it simpler for advisers and employers, as well as those savings for retirement.
Smart launched in the UK in 2014, and now has partnerships and product offerings in Australia, Ireland and Dubai.
Its flexible platform model spans allow for partnerships with a range of financial services entities including asset managers, banks, advisors, administrators, and insurers.
Smart says it deploys “an innovative and extensive end user engagement and testing process” to ensure that it provides an optimal experience for the advisor, employer, and participant alike.
Smart has backing from a number of global investors including JP Morgan, Legal & General, Barclays, the Link Group, and Natixis.