Annuity Rates | Pension Transfers, Financial Advice Scotland

Life Insurance and Annuities: New EU Gender Directive Affects Us All

I highlighted this topic a little while ago, but due to the upcoming deadline in December this year, it’s important that I return to it today. This is because what is being decided by European Law for us here in Scotland will not just affect Life Insurance. It will also affect people looking for Critical Illness Cover, and pension planning for those purchasing Annuities as they prepare for their retirement.

On 1st March 2011 The European Court of Justice (ECJ) ruled that from 21 December 2012, insurance companies cannot charge people different amounts based on gender.

This new legislation will also affect pensions because there will be no longer be deemed a difference between men and women when it comes to calculating the annuity (income) that people will get. Women stand to lose most, because just now they pay less for things like life insurance, critical illness and car insurance. This is due to the fact that historically they are statistically less likely to claim. Men however now stand to lose out when buying an annuity or income protection as historically they have had a better deal in those areas.

Highest Annuity Rates in 5 Years?

Hi everyone,

thought I’d try and bring you a little cheer and as spring begins to blossom into early summer, as with everything – a little sunshine goes a long way. If you’re enjoying your retirement already and planning a round of golf or sneaking off to cast a fly on your favourite loch or chalk stream you already know what it means to be favoured with a good retirement income.

If you’re not quite at that point yet, today’s piece is a little update on what you’ll buy with your pension fund when it matures – mostly that means an annuity.

One upside of the credit crunch is that annuity rates are now at a five year high. Insurers are involved in a rate war with 17 rate rises in the last month alone, with 88% of them propelling upwards. According to Nigel Callaghan from Hargreaves Lansdown the pensions analysts, the yield for a 65 year old male is now 7.66 per cent, 11 per cent higher than the yield 2 years ago which was 6.92 per cent. Product providers fighting for the top spot include Prudential, Legal & General and Scottish Equitable.

(The value of the investment can go down as well as up and you may not get back as much as you put in. Past performance does not guarantee future growth or income).

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Life Insurance and Annuities: New EU Gender Directive Affects Us All

Highest Annuity Rates in 5 Years?