Preparing for October's 'dramatic' pension statement changes

Head of policy development Rachel Vahey said the Financial Reporting Council's changes to pension statements - received annually by active members - mean they may show "significantly higher" figures for what to expect in the future. "From October, when working out what a pension could be worth in the future, today's value will be rolled forward and increased by a growth rate linked to the volatility of the funds it's invested in - the higher the volatility, the higher the growth rate and the estimated final value," she explained. The four different future growth rates are 1%, 3%, 5%, ...