FSA to cut pension projection rates

Press Association
Elderly person
Elderly person

Pension savers will see thousands of pounds shaved off their predicted future retirement pots from 2014 under the City regulator's plans to give them a more realistic idea of potential returns.

The Financial Services Authority (FSA) said it will reduce the standard projection rates used to show possible future returns and the impact of charges for someone taking out a product such as a personal pension or a life policy.