01 March, 2011
Today the European Court of Justice (ECJ) has ruled that men and women cannot be charged different insurance premiums because of their gender. This decision has also affected the cost of buying an annuity pension.
According to the ECJ 'taking the gender of the insured individual account as a risk factor in insurance constitutes discrimination.'
Generally women live for longer than men and therefore receive a smaller annual pension for the same pot of money based on evidence that on average they live longer.
This change will now lead to men receiving a smaller annuity income than they do now when brought into line with those for woman. Premiums are unlikely to meet in the middle because of the costs of industry re-pricing and the inevitably be higher.
The ruling will take effect from the 21st December 2012.