This provides them with a guaranteed pension for life. The amount they receive depends on several factors, including how long they are likely to live.
On 21 December 2012, the EU Gender Directive comes into force for individual pensions. From this date, annuity providers will no longer be able to offer different pension rates for men and women. Traditionally, men have received a higher annual annuity income than women, due to their lower life expectancy. This will not be the case in future. The new Directive is likely to reduce the pension income of men retiring after 20 December this year.
What this could mean for men due to retire:
It is estimated by leading annuity provider Partnership Assurance that male annuities will be reduced on average by 2% to 4% . This could directly affect men (and their spouse or partner, if it is planned to take out a joint life annuity).
How seeking Independent Financial Advice can help
At a time of historically low annuity rates, it is essential that retirees receive the maximum pension available – but annuities can vary widely, and your current pension company may not offer the best deal.
As your local Chartered Financial Planner, Jeremy Phelps is able to search the entire market, review all the options and recommend the most suitable annuity for you.
Jeremy and his firm, Financial Solutions Wales offer up to one hour’s complimentary consultation and the purpose of this is to identify needs and objectives, establish what benefits would result from using their services, outline any associated costs and give you the opportunity to appoint a financial adviser.
If you have any questions about this article, and how it may affect you, call Jeremy Phelps at Financial Solutions Wales on 01554 770022.