Virgin Money: incorrect statutory money purchase illustration versus AS TM1 regulations

engagedandopen

I've just had my first pension illustration from Virgin Money (dated 23/06/25), part of Nationwide now, after a number of years of having a pension with them - and it does not accord with AS TM1 v5.1, which has applied since 6th April 2024.

C.2.16 states that 2.5% must be used for inflation, but they state they have used 2.0%.

C.3.1 states that it must be assumed that no lump sum is taken, but they state they have assumed a tax-free lump sum of 25% will be taken.

It might not bother anyone else in the scheme of things, but I wanted to let people know.  There might be further errors, but those two were lying in pretty much plain sight.  It doesn't give me confidence that Virgin Money or Nationwide understand or are competent in financial matters.

dunstonh

It doesn't give me confidence that Virgin Money or Nationwide understand or are competent in financial matters.

Or maybe it's as simple as the FCA being the one that dictates the rules on projections for retail pensions and your understanding is incorrect.  You have received a projection that falls under COBS and not the FRC.

COBS rules state that the rate used must be 2% per year.    

COBS also requires an annuity value at retirement must be displayed and that would be made after the payment of tax free cash.

It gives me confidence that Virgin Money and Nationwide understand the rules they are meant to follow.

Marcon

engagedandopen said:

I've just had my first pension illustration from Virgin Money (dated 23/06/25), part of Nationwide now, after a number of years of having a pension with them - and it does not accord with AS TM1 v5.1, which has applied since 6th April 2024.

C.2.16 states that 2.5% must be used for inflation, but they state they have used 2.0%.

C.3.1 states that it must be assumed that no lump sum is taken, but they state they have assumed a tax-free lump sum of 25% will be taken.

It might not bother anyone else in the scheme of things, but I wanted to let people know.  There might be further errors, but those two were lying in pretty much plain sight.  It doesn't give me confidence that Virgin Money or Nationwide understand or are competent in financial matters.

It bothers me far more that people post here, with banner headlines about something being 'incorrect' without first checking with the provider...

westv

A big shout out to AS TM1 v5.1!