Men should get a move one with their annuity purchase say My Pension Expert

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The end of this year will see the inequality of annuity rates disappear between the sexes meaning male annuity rates could be hit

My Pension Expert
with rates at historic lows anyway, the male retiree should get a move on with their annuity purchase and try and get their annuity bought prior to the rates changing.

Those looking to buy an annuity at the moment will know just how bad rate have become. From the highs of the 1990’s where a typical annuity rate might have been 16% rates have now plummeted to around just 6%.

What the majority of new retirees will be wondering is, can rates get any worse? Well for 50% of the retiring population the answer could be yes.

Following last year’s European directive on sexual discrimination within the insurance industry, insurance companies have not been able to discriminate between the sexes when it comes to car insurance premiums and now the same is to happen to the annuity industry after a year’s reprieve.

At the end of this year male and female rates are to be aligned, this despite the fact that statistically men don’t live as long as woman and therefore won’t take as much income over their remaining lifetime. No one knows for certain how much this may affect male rates but some have quoted that rates for the un-fairer sex could drop by as much as 7-8%.

Scott Mullen of My Pension Expert commented, “With rates at historic lows anyway, the male retiree should get a move on with their annuity purchase and try and get their annuity bought prior to the rates changing. Just like when we saw the change to car insurance premiums last year, the insurance companies didn’t pass on the benefit the male drivers they just put up the premiums for the woman. It’s highly likely that male rate will get hit as a result of the changes”.

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