Pension providers will now have to include the impact of inflation in personal pension illustrations after the Financial Services Authority (FSA) released its final rules on the issue.
The rules will be enacted from April next year and come after a series of consultations. Providers, it said, can comply with the rules from 6 April this year if they want to. The FSA said point-of-sale illustrations are now required to make an allowance for price inflation. The document said key features illustrations (KFIs) should be provided in real terms - instead of nominal terms as at present. "Our research indicated that consumers believed they should be made aware of the possible effect of inflation on the buying power of their pension, to enable them to plan for their retir...
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