FSA cuts pension projection rate despite opposition

The regulator confirmed it will reduce the intermediate projection rate for tax-advantaged products - like personal pensions - from 7% to 5% and reduce the adjustment for tax-disadvantaged products from 1% to 0.5%. The move will give consumers more realistic expectations of retirement income, it said. The rates for tax-advantaged products, previously 5%, 7% and 9%, will now be 2%, 5% and 8%. A number of providers had challenged the proposal, arguing the drop in the intermediate rate from 7% was too big and may deter people from saving. PricewaterhouseCoopers (PwC) had conducted ...