European ruling could mean lower pensions for men
Equality ruling could be effective from 1 March 2011 – The Pensions Advisory Service (TPAS).
We strongly suggest that you click the link above and read the article from The Pensions Advisory Service. It explains a pending judgement in the European Court of Justice that has pretty much come in under the radar.
It’s worrying that Malcolm Tarling from the Association of British Insurers (ABI) says:
‘We have absolutely no inkling of what the judgement might say but the advice we’ve given to members is to prepare for a worst case scenario.’
The rate for buying a pension has always been better for a man reflecting the fact that, on average, women live longer than men. If insurance companies have to offer the same rates for men and women all it will mean is that men get less pension for their pot of money.
At a time when we already have a huge savings gap and the average pension pot at retirement is about £24,000 this could be a devastating blow. Let’s hope that the European Court of Justice sees some sense in this quest to achieve maximum gender equality.
As always seems to be the theme of so much in our industry at the moment – watch this space!