The Financial Services Authority wants pension funds to lower their projected forecasts given to pension holders. The FSA is set to lower the standard projection rates used by pension funds which will spit out more realistic pension forecasts and the changes will go live in 2014 says Sky News.
The FSA said that historically low interest rates, coupled with the continued economic slowdown has meant that a prudent attitude towards possible pension values is important. Currently, pension statements show pension values based on growths of 5%, 7% and 9% but this is set to be cut to 2%, 5% and 8%.