FSA targets inflation-adjusted point-of-sale info for pensions

Personal pension illustrations must make clearer the effects of inflation on pension pots, the Financial Services Authority (FSA) said in a policy statement today today. The regulator said currently there is too much difference between point-of-sale key feature illustrations (KFIs) and annual statutory money purchase illustrations (SMPIs). KFIs are in monetary terms whereas SMPIs are adjusted for inflation, providing a real-terms idea of retirement income, the FSA said. However, KFIs are more personalised than SMPIs, which adds further  confusion for investors, the regulator said. ...