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...
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