If you’re saving for a pension, you probably get a projection each year from your pension company showing that you’ll have an enormous amount saved up by the time you retire if you continue giving them your money. Problem is that the figures they use for your projection are pure fantasy and can never be achieved. The Financial Services Authority allows pension companies to use three growth rates in their projections – Low-5%: Medium-7%: High-9%. But pension funds have only managed to grow by about 4% over the last 20 to 30 years. Then you have to take off the pension fund’s management charges which will usually eat up about three quarters of any growth achieved
Lesson to be learned – there are few liars on earth quite as brazen as pension funds out to get your money to make their owners and managers multi-millionaires at your expense.