Proposed revisions to ASTM1: PLSA response

The FRC has developed a set of proposals to update ASTM1 rules for Statutory Money Purchase Illustrations, and the PLSA has responded to their consultation.

The PLSA welcomes the move towards greater consistency which will make it easier for savers to compare projections on a Pensions Dashboards setting.

We have some reservations about using volatility to underpin growth assumptions and feel that it was essential to publish the research from the University of Bath at the same time as the consultation to assuage any concerns.

We do not agree with using a single life level annuity for decumulation assumptions as this makes it harder to compare DC and DB income and nudges savers into making decisions that could worsen the gender pensions gap.