Statement of reasonable projection
A statement of reasonable projection is a statement predicting the likely future value of a pension from a defined contribution (DC) scheme (prior to 2023) or a personal retirement savings account (PRSA), which is based on assumptions relating to future contributions and investment returns, and the cost of buying an annuity when a member retires.
In projecting the future value of your fund at retirement your pension plan administrator or PRSA provider will have to make a number of economic assumptions regarding future investment returns, interest rates etc. It is important to note that any figures provided regarding your future benefit levels are only projections and you will only know the level of your retirement benefits shortly before you actually retire.
From 2023 onwards, members of occupational pension schemes who have not yet retired will receive a ‘pension benefit statement’ instead of a statement of reasonable projection each year. The pension benefit statement will show two different pension estimates for members of DC schemes.