FSA projections overestimate equity growth

The FSA's top-line growth rate assumptions for pension and investment products are higher than those...

The FSA's top-line growth rate assumptions for pension and investment products are higher than those factored in by the market over the next five to 10 year period. Growth rate assumptions, which are mandatory in key features documents and illustrations for consumers, are used to highlight the expected return on equities in different growth environments. In the past the FSA has acted quickly to ensure projection figures reflect long-term equity growth expectations, with the last review carried out in 1999. Following that review the projection rates for pensions were set at 5%, 7% and 9...