How are projection rate changes affecting my pension or investment?

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You can find out below how projection changes affect your particular pension or investment product.

Since 7 March 2014, the figures - including fund growth rates on your statement or annual review - are adjusted for inflation, which means we’ve assumed a reduction of 2.50% a year until your retirement date. There are exceptions where the fund growth rates shown on your statement or annual review stay based on nominal growth rates that aren’t adjusted for inflation. These are:

  • Drawdown pensions, the nominal growth rates shown are reduced to:
    Low growth rate 2.00%
    Mid growth rate 5.00%
    High growth rate 8.00%
  • ISA/Life , the nominal growth rates reduced to:
    Low growth rate 1.50%
    Mid growth rate 4.50%
    High growth rate 7.50%
  • The maximum mid growth rate that can be used in pensions illustrations - other than statutory money purchase illustrations - is 5.00% and for ISA/LIfe illustrations is 4.50%

From 22 February 2014:

  • The figures on your yearly statement are inflation-adjusted, which means we’ve assumed a reduction of 2.50% a year until your retirement date. This includes the fund growth rates shown.
  • We’ve changed the assumptions on which we base the illustrations to show tax-free cash, a pension that stays the same each year and no spouse’s pension. This may have affected the level of benefit you see on your statement, as the cost of providing these benefits may be different to those shown before. For example, a pension which pays you the same amount each year will cost less than one that increases each year.
  • The maximum mid growth rate that can be used in projections - other than statutory money purchase illustrations - is 5.00%.

From 22 February 2014:

  • We haven’t changed our assumptions, so these stay based on nominal growth rates that aren’t adjusted for inflation.

The nominal growth rates are reduced to:

  • Low growth rate 2.00%
  • Mid growth rate 5.00%
  • High growth rate 8.00%
  • The maximum mid growth rate that can be used in projections is 5.00%.

From 22 February 2014:

  • We haven’t changed our assumptions, so these stay based on nominal growth rates that aren’t adjusted for inflation.

The nominal growth rates are reduced to:

  • Low growth rate 2.00%
  • Mid growth rate 5.00%
  • High growth rate 8.00%
  • The maximum mid growth rate that can be used in projections - other than statutory money purchase illustrations is 5.00%.

From 22 February 2014:

  • We haven’t changed our assumptions, so these stay based on nominal growth rates that aren’t adjusted for inflation.

The nominal growth rates are reduced to:

  • Low growth rate 2.00%
  • Mid growth rate 5.00%
  • High growth rate 8.00%
  • The maximum mid growth rate that can be used in projections - other than statutory money purchase illustrations is 5.00%.

From 22 February 2014:

  • We haven’t changed our assumptions for the type of benefits we use in the projections.
  • The figures on your yearly statement - including fund growth rates - are adjusted for inflation, which means we’ve assumed a reduction of 2.50% a year until your retirement date.
  • The maximum mid growth rate that can be used in projections - other than statutory money purchase illustrations - is 5.00%.

From 22 February 2014:

  • The figures on your yearly statement - including fund growth rates - are inflation-adjusted, which means we’ve assumed a reduction of 2.50% a year until your retirement date.
  • We’ve changed the assumptions on which we base these projections to show tax-free cash, a pension that stays the same each year and no spouse’s pension. This may affect the level of benefit you see on your statement, as the cost of providing these benefits may be different to those shown before. For example a pension which pays you the same amount each year costs less than one that increases each year.
  • The maximum mid growth rate that can be used in illustrations - other than statutory money purchase illustrations - is 5.00%.

The nominal growth rates (these rates are not adjusted for inflation) are reduced to:
Low growth rate 1.50%
Mid growth rate 4.50%
High growth rate 7.50%

If you’re looking for more information

How can I find out more about projection rates?