22 December 2009
According to research from comparemypension.com for the Sunday
Times, thousand of savers in closed with-profit pension funds are
being given overly optimistic assumptions as to what they will
receive in retirement.
The independent financial advice website has reviewed almost
1,000 pension plans for clients and has uncovered a worrying trend
in pension projections for people in with-profits funds that are
closed to new business.
One Royal London customer asked for a projected value of his
fund in five years and the insurer calculated this based on a
growth figure of seven per cent a year, which is standard practice,
even though his pension is accruing bonuses at an annual rate of
just one per cent.
