The clock is ticking...get a better rate, before it's too late!
20 November 2012
The EU Gender Directive that comes into force on 21st December 2012 may mean that thousands of men are set to miss out on higher annuity rates.
The European Court of Justice ruled in 2011 that the current exemption to the Gender Directive, which allows gender specific pricing, is not consistent with EU long term principles of equality. Therefore, new legislation will mean all annuities will be written on unisex terms, which doesn't come as the best of news to the male population.
According to AgeUK, the average life expectancy of a male is 78 years old, whereas the average woman lives until she is 82. Based on a shorter life expectancy men have traditionally been rewarded with higher annuity rates. The MoneyMarketing 2012 Gender Agenda reports that twenty years ago, a typical man retiring at 65 could get an annuity rate of nearly 15%. Today it's usually around 6.7%, and with this new ruling, it's anticipated to drop closer to 6%. A male with a pension pot of £100,000 can expect to be almost £700 a year worse off with an annuity purchased after the 21st December 2012. Based on average life expectancy this would represent a potential loss of nearly £12,000 over his lifetime.
Boost your income
Whilst this all sounds like bad news for the men out there, Key has the solution. Our hassle-free annuity service, can do all the hard work for you by searching the whole market, providing you with all the information you need to choose the right annuity for you. All you have to do is take the first step to securing your brighter retirement by calling Key today. Key receives payment from your chosen provider, meaning the service is completely free of charge to you.
The impact of delaying setting up your annuity beyond the gender directive deadline should not be underestimated. Men need to act now if they want to avoid missing out on current male-favourable rates.
Call our annuities team today on 0800 331 7711. Lines are open Monday-Thursday 9am-7pm and Fridays 9am-5.30pm.