Review Your Pensions As Projections Cut

Review Your Pensions As Projections Cut.

The financial industry regulator, the Financial Services Authority has confirmed that the current levels for quoting projections of fund values for pensions of 5% low growth, 7% mid growth and 9% higher growth are to be reduced in 2014.  The new projection rates will be set at 2% low growth, 5% mid growth and 8% higher growth.

Our view
These new projections will dramatically reduce your projected pension fund at retirement and we believe perhaps give a more accurate picture of your likely fund values at retirement.  We have always projected clients pension funds at the lower growth assumption of 5% anyway, which is more reflective of current investment return potential.  Whilst these projections never reflect the actual growth you may achieve, they at least help you to understand what your likely future pension will be.

What should you do? You should revisit your pension funds on a regularly basis to get fund values and projections.  You should then also reconsider how much you pay into your pension fund to achieve your target in retirement.  Money MOT service: We do target projections of clients pension funds within our Money MOT service to keep you up to date with your likely pension forecast.  If you have not already done so, contact us about our regular Money MOT service.