anyone noticed a big difference in Standard Life estimated pot value this year v last

charleyroo

I am a bit of a geek, and although am only 25, take a yearly interest in my pension statement when it comes.


I noticed that, although my contributions have increased and the current value of my pot has also increased nicely, the 'end game' pot value had decreased by ~£50k!


I took a few mins out to ring Standard Life and it turns out the FSA had given them guidance/instructions/orders to change the way they account for inflation in your main yearly statement - I think they used to show a higher representation of inflation but have been told to tone it down.


Although, if you go online and request a statement you will still get the high, medium and low.


I just wanted to post in case anyone else noticed. I did wonder why they didn't put a note in explaining.

dunstonh

the 'end game' pot value had decreased by ~£50k!

Not uncommon.

it turns out the FSA had given them guidance/instructions/orders to change the way they account for inflation in your main yearly statement - I think they used to show a higher representation of inflation but have been told to tone it down.

Every now and then the FCA do a review of the projection rates and tells providers to make changes. There have been many adjustments over the last 20 years.

I did wonder why they didn't put a note in explaining.

The assumptions are detailed in the statement. Changes in assumptions would require explaining and the less text you have on these things the more chance you have the person will read it.

charleyroo

Thank you

I did mean the FCA of course!

sandsy

Before last April, FCA projections took no account of inflation so the final pot looked like a lot of money.


Since last April, the FCA have required all firms to show the projected value of the pot after inflation to give people a better idea of its buying power if it was available today. Projections use an inflation rate of 2.5% for expressing the pot in today's terms.