Research Services for Pensions illustrations: presenting uncertainty and variability

BACKGROUND The FRC is the UK's independent regulator responsible for issuing and maintaining technical actuarial standards. It is responsible for Actuarial Standard Technical Memorandum 1 (AS TM1), which specifies the assumptions and methods used to calculate statutory illustrations of money purchase, or defined contribution, pensions. Pension illustrations are based on assumptions about future investment returns, inflation and retirement choices. The uncertainty and variability inherent in future retirement outcom...