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Negative interest rate?

Southend1 · 2015-02-09 20:19:30

Just received the annual statement for a deferred occupational DC pension. It has a projected pension amount at retirement age of approx £3500. The assumptions state that an underlying interest rate of -0.4% has been used in calculating the cost of converting the pension account to a pension and that my fund will be used…

Comments

Southend1 Posts: 3,362 Forumite

10 February 2015 at 8:20PM

dunstonh wrote: »

Are you sure it says interest rate?

Pension projections have started using a negative at the lower end and -0.4% is a figure you frequently see used. However, it is an example rate and not an interest rate.

It definitely says interest rate. I'm not convinced they always use the right terminology though as they seem to use pension and annuity interchangeably.

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