Present and Future value on money purchase pensions

Q. On the advanced setting for money purchase what is the difference on the growth setting between todays and future growth


A. There is really very little use for the Present / Future Value setting in the context of money purchases. Its use is much more straightforward in the context of future purchases or expenses.

For a money purchase the Present / Future Value setting would only come into play if you were to Step Up / Step Down contributions.

- Should the future increase or decrease (step) in contributions be in today's terms and therefore be inflated by the time you step them up or down (Present Value)?

- Or should the future stepped amount of the contribution be exactly as entered without factoring for inflation (Future Value)?

In most cases I think the latter option would be what you are after if you ever need to step contributions