Time to manage thoseclient expectations

Intermediaries should look on the new statutory money purchase illustrations as an opportunity to extend market share by preparing their clients well in advance for any shortfalls they may be likely to face

Clients with money purchase pensions are in for a big shock when they receive their first statutory money purchase illustrations (SMPIs). Advisers need to be well prepared to deal with anxious enquiries and to make the most of the potential for increasing contributions. From April the annual statement from providers must show the real value, in today's prices, of the income clients can expect to buy with their pension fund at retirement. Where clients are used to seeing statements that simply provide their current fund value, this figure for the inflation-adjusted annual income may be h...