Pensions - Articles - NAPF comment on FSA changes to projection rates

 Joanne Segars, Chief Executive of the National Association of Pension Funds, said:

 “People often struggle to plan their retirement, and these new rates should offer a more helpful and realistic guide.

 “We are in a low growth environment and have been for some time. It is pointless letting people hope for high returns that might never materialise. This is a reality check.

 “The revised rates are still estimates and are not a promise of what the pension will look like. The best way for people to manage that uncertainty is to give their savings a regular MOT to see how they are faring.

 “The UK is not saving enough for its old age, so it is important to help people see how much they need to salt away. A reformed simpler, flat-rate state pension will also enable people to make stronger retirement plans.”