We have changed our projection rates in our pre-sale illustrations to better reflect the types of assets in the funds selected. Where the funds are of a more cautious or fixed interest nature we will use projection rates lower than the FSA standard rates. These are only assumptions and our current medium to long term view of the asset growth. These are not guaranteed and could be lower or higher than our current view. What you might get back depends on how these assets actually perform.
We have determined a long-term growth rate assumption for each asset class. In line with ABI industry guidance, we have used five main asset classes (tabled below). We will review these growth rates assumptions each year, as a minimum, and update them where necessary. The rates are based on our current medium to long-term view of asset growth.
| Equities |
8.00% |
| Property |
7.50% |
| Corporate Bonds |
5.03% |
| Gilts/Government Bonds |
3.80% |
| Cash/Money Market |
3.80% |
Using the long-term asset mix of each fund and applying the above growth rates determines a fund’s appropriate growth rate.
Other companies may use different projection rates, as their long term view may differ from ours. This means that you cannot necessarily compare products from different companies based on the projected returns shown in their illustrations. If you do need help comparing products from other companies please speak to your usual financial adviser.
The document below lists the funds available through the Zurich Protected Rights Transfer Plan, Zurich Self Invested Personal Pension and Trustee Investment Plan and the fund specific projection rates that are currently used in our illustrations.
» Zurich Pensions Fund specific projection rates
