My Pension Expert reveals the extent of Gender Equalization on annuity rates

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The major annuity providers have released gender neutral rates prior to 21st December and My Pension Expert's analysis of the early figures show lower than expected drops for male retirees and only a slight increase for woman.

My Pension Expert
Our early analysis of the figures have shown that male annuity rates have dropped by around 2.5% on average based on the gender neutral rates available

Without doubt the hot topic for retirees over the last months has been the Gender Equalization legislation which comes into force on the 21st December on the back of the EU directive that forbids annuity companies from discrimination based on the sex of the applicant. Traditionally male retirees would be entitled to a higher annuity rate compared to women retirees because women live, on average longer than males.

However, following the EU directive annuity companies will no longer be able to discriminate on this basis. The legislation comes into effect on the 21st December but some of the major annuity providers including Aviva and Just Retirement have started to quote gender neutral rates before the effective date. My Pension Expert has analysed the early data and this shows that the male rates have not fallen by the margin that was feared, with early predictions by notable sources like HMRC warning of up to a 13% drop for males.

Scott Mullen of My Pension Expert said, "Our early analysis of the figures has shown that male annuity rates have dropped by around 2.5% on average based on the gender neutral rates available and while this is a significant drop and will add further pain to male retirees it is not as bad as initially feared. On the other hand we don't think woman retirees will be popping open the champagne as early analysis has indicated just a half per cent increase in their rates"

The drop for males is on top of significant falls experienced in annuity rates throughout 2012 and has increased calls for something to be done to protect the retiring population from a life time of low income after years of hard work.

My Pension Expert is a company of Diploma qualified financial advisors who specialise in options at retirement.

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