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.