Warning providers' maximum pension projection rates too high

Laura Miller
clock •

The Financial Conduct Authority (FCA) has said it is concerned providers' projections of what pension savers can expect to receive in retirement if they buy certain products are too high, and it wants to standardise the process.

In a wide-reaching consultation paper, the regulator said life companies are currently creating inconsistency for consumers, and firms using higher projections may be able to gain an unfair competitive advantage over their competitors. Firms are required to undertake projections of future benefits for life and pension products that reflect the investment potential of the product, subject to maximum rates, which are set by the FCA. Three rates can be given, a maximum intermediate projection flanked by an upper and a lower bound. The differential for the upper and lower bounds is fix...

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 Retirement

Retirement tax planning and the issue of underspending

Retirement tax planning and the issue of underspending

Retirement planning Q&A

Professional Adviser
clock 12 October 2026 • 6 min read
Partner Insight: PruFund arrives on Scottish Widows Platform

Partner Insight: PruFund arrives on Scottish Widows Platform

How integrating PruFund onto the Scottish Widows Platform expands retirement options for advisers without increasing administrative burden

Ross Easton, Head of Platform Propositions, Scottish Widows
clock 05 October 2026 • 3 min read
The conversation that has to change with the 100-year life

The conversation that has to change with the 100-year life

'Advisers need to continue to challenge the cliff-edge narrative directly with clients'

Graeme Bowden
clock 24 September 2026 • 4 min read