FRC launches reviews into pension illustration assumptions and standards

By The Financial Edition · 3 November 2026 · 15:52 GMT · Professional Pensions · 1 min read

Photograph: Diego Delso, delso.photo · CC BY-SA · sector illustration, not event evidence

Consultation on Actuarial Standards

The Financial Reporting Council has published a call for feedback on the post-implementation review of actuarial standard technical memorandum 1, alongside a discussion paper concerning future illustration standards. The review of AS TM1 examines the assumptions and methods used for statutory money purchase illustrations, with a particular focus on pre-retirement investment fund accumulation rates and the conversion of accumulated funds into retirement income. The separate discussion paper explores modernising illustrations to reflect different retirement withdrawal options and default pension benefit solutions.

Deadlines and Regulatory Context

The deadline for feedback on both the AS TM1 call for feedback and the discussion paper is 26 January 2027. According to the FRC, the reviews are intended to support the government's guided retirement initiatives and ensure that defined contribution pension savers receive clear, consistent information throughout their retirement planning.

Why it matters

The FRC's reviews could lead to altered calculation methods and standards for statutory money purchase illustrations, affecting how insurers and pension providers communicate projected retirement incomes to defined contribution savers.

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