Official figures have revealed that the cost of a pension for males has increased, following the introduction of new European Union rules.
Traditionally, males received more money from the same size pension pot than females, because on average they do not live as long, and therefore benefit more from better annuity rates.
However, since late last year, annuity, insurance and pension providers have been unable to price products based on gender; and this has had an impact on men’s retirement incomes.
According to data published by the Office for National Statistics, between December 2009 and March of this year, the size of the retirement fund needed to buy male annuity increased by nearly thirty percent.
As a result, to receive an income of £5,000 a year, the average sixty-five year old single man would require a pension pot of £152,000; compared to December 2009’s figures, when the pension pot would have had to have been less than £120,000.
For women, the increase is less than fifteen percent; with the size of the pension pot rising from £133,500 in 2009, to just shy of £153,000.
If you’re looking to retire in the next few years, or if you’re planning ahead and want to ensure that you have a sufficient income for retirement, by paying into a pension scheme now – our financial advisors are on hand to offer advice.
Our financial advisors not only offer tailored and impartial advice surrounding the best pension schemes available, but we are also experienced in offering a review of your current pension scheme – enabling us to offer you honest advice, which ensures you get the most out of your finances both now and in the future.