Your yearly pension statement and projections to retirement age are governed Statutory Money Purchase Illustrations (SMPI). These are a set of rules that pension companies are required to abide by when they issue you with pension statements and forecasts included estimated retirement income.
SMPI rules are set by the Financial Reporting Council and these change on 1st October 2023. Frome this date, pension providers must change how their illustrations are calculated.
Comment
Some pension providers have removed the tax-free cash lump sum projection from their annual statements, others have not. We assume this is due to system restrictions on those that have removed lump sum calculations.
We suggest that new annual benefits statements usual actual fund performance and volatility for each fund will give people a more accurate projection of the likely fund values and income potential in retirement.