Cashflow projections for DB transfers
I'm having a discussion with the company's PTS about my cashflow forecast for a DB transfer case. I've stress tested it to give a relatively more realistic picture than a straight 6.2% return which is apparently required by the FCA. I know the stress test should be taken with a pinch of salt, but I can't see how showing a linear 6.2% growth rate can be seen as any more realistic!
Are DB transfers just a 'painting by numbers' exercise in this regard? At the recent Powwow we were discussing cashflow projections where some were saying they use a 25% drop in the portfolio with no recovery.
I'm going to have to change the forecast for the benefit of the PTS to get the case signed off, but I would welcome views from other people who prepare cashflow projections for DB transfers