DC pension projection revamp could see 'perverse' results - LCP

‘Unrealistic’ outcomes

Jenna Brown
clock • 2 min read

Changes to the way defined contribution (DC) pensions are projected could result in “perverse and unrealistic” results if plans go ahead in their current form, according to LCP.

The pension consultancy said changes to DC pension projections were designed to increase savers' understanding but could, in fact, leave them more confused. It made the comments in a response to a consultation by the Financial Reporting Council (FRC), which is due to close on 31 May.  The consultation is focused on statutory illustrations for DC members produced by pension providers. LCP said to produce them, providers need to consider how the current DC pot is likely to grow between now and when the member reaches pension age.   Until now the rules have given pension providers con...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

Government publishes Pensions Investment Review interim report and launches DC and LGPS consultations

Government publishes Pensions Investment Review interim report and launches DC and LGPS consultations

Report published as Reeves delivered inaugural Mansion House speech

Jonathan Stapleton
clock 15 November 2024 • 4 min read
Chancellor to create DC 'megafunds' in Mansion House growth bid

Chancellor to create DC 'megafunds' in Mansion House growth bid

Chancellor to unveil ‘biggest pension reforms in decades’

Martin Richmond
clock 14 November 2024 • 3 min read
Pensions dashboards could leave savers at risk of 'poorly informed' transfers

Pensions dashboards could leave savers at risk of 'poorly informed' transfers

Research finds two-fifths of savers likely to use dashboards to carry out a pension transfer

Martin Richmond
clock 13 November 2024 • 3 min read