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Annuity and EU Gender directive

Have any of the annuity companies given figures yet to suggest how much men will lose out after Dec 21?

I reach my quoted retirement age three weeks after that, and I'd love to know if I'd be better off if I could take my annuity pension 3 weeks early (suffering any penalties) rather than waiting and getting the lower gender-neutral rate.

But I can't find any hard figures and I suspect my provider won't be willing to give advice without an IFA.

Another annoyance is that the low/average/high-growth pension perdiction figures I got earlier in the year don't say whether they take the new ruling into account.

Reply to
Reentrant
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I can't answer your question, but are you sure that there's a penalty?

It is usual for private pensions to be set up so that people can retire up to 5 years early without suffering what the industry calls "penalties".

Though obviously the amount will be lower because there will be a slightly smaller pot invested and it will have to be calculated to pay out for longer but these aren't penalties, just consequences of early retirement.

tim

Reply to
tim.....

Yes you're right - maybe I was too cynical expecting MVA's and penalties for cashing-in early. I called my provider and there are none provided you are over 55.

They don't yet have any figures for post-Dec21 annuity rates but I'm not going to risk it - I'm sure the better rate I'll get early in December offsets an extra month of interest.

Presumably if you go for 100% joint-life with your (opposite sex) partner the new Directive shouldn't make much difference anyway.

Reply to
Reentrant

AIUI some annuity providers are moving to unisex rates before the statutory 21 December deadline so you may need to jump more than 3 weeks early. Worth checking soon-ish.

Reply to
Robin

I'm in a similar position. My IFA (not sure how independant) is very (too) keen for me to take out an annuity now. With such poor rates regardless of legislation change I'm having second thoughts and wondering about the income drawdown route. Any comments welcome.

Reply to
AnthonyL

will lose out after Dec 21?

If, as poeple sometimes claim, annuity rates have fallen to the extent that they are now much the same as long term gilt rates then perhaps the life expectancy of the annuitant will have little effect anyway.

Robert

Reply to
RobertL

Unfortunately annuity providers won't publish the expected rates yet. To be fair to them this would not be possible given that rates do change quickly based on the underlying gilt rates. Your quoted annuity will be based on current rates.

In theory taking benefits 3 weeks early should not make much difference to your funds especially if you have converted your funds to cash. You should have done this if you are close to taking your benefits.

The change to the rules should mean a decrease in the rates paid to men. I have seen a figure of 3% quoted in the press but don't have much else to base this on.

When you do take benefits make sure you shop around for the best rate. In my experience this can boost your income by more than 15%.

Check out my blog on the EU gender directive and annuities:

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Reply to
moshkinguk

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