The IQPF and FPSC publish an Addendum to the 2016 Projection Assumption Guidelines

Date : 29 March 2017

The IQPF and Financial Planning Standards Council (FPSC) just published and Addendum to the 2016 Projection Assumption Guidelines. This new addition contains the data sources on which the Projection Assumption Guidelines are based, as well as the specific calculations for inflation and rate of return guidelines.

The Addendum also includes historical Projection Assumption Guidelines dating back to 2009, rates of return for relevant indices and the standard deviation of returns.

The Projection Assumption Guidelines aid financial planners in making financial projections that are free from potential biases or predisposition. They are a guide meant to help financial planners estimate future inflation rates, return rates, life expectancy and other assumptions, in order to set their clients on a course to financial well-being. The addition of the Addendum will help ensure the Guidelines are understood and readily adopted by financial planners.

The Projection Assumption Guidelines and Addendum are developed by the Projection Assumption Standards Committee, a team of actuarial and financial planning professionals. FPSC and IQPF thank Committee members Nathalie Bachand, A.S.A., F.Pl.; Martin Dupras, A.S.A., F.Pl., M.Fisc.; Daniel Laverdière, A.S.A., F.Pl.; and Patrick Longhurst, CFP®, FCIA for their significant contributions to this important publication.