Expert market analysis

Our Wealth Managers regularly put together insightful market updates in the form of webinars and PDF documents and update handy guides like our Jargon Buster and fund growth projections.

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SAI Fund Growth Projections

The Society of Actuaries in Ireland (SAI) provides regulations and guidelines to all Irish insurers specifying the fund growth rates to be used in customer projections. These rates were reviewed by the SAI this year and have changed with effect from 1st March 2021.

The changes being implemented affect the growth rates which are used in projections and will see a reduction across all asset classes. This means that projected values used in disclosure will fall. This is an industry-wide change which all life insurance companies are required to implement by 1st March 2021.

Assumption Current New
Cash (Maximum annual investment growth) 1% 0%
Fixed Interest (Maximum annual investment growth) 2.5% 1%
Equities (Maximum annual investment growth) 5% 4.5%
Property (Maximum annual investment growth) 5% 4.5%
Overall (Maximum annual investment growth) 5% 4.5%

Depending on the type of fund(s) a customer is invested in, their projected growth rates will likely reduce, but may reduce by different amounts than those noted above subject to the fund’s asset mix. Multi asset funds use a weighted average of this breakdown to project future growth rates.