Despite the years of research and hard evidence that have formed many a policy here in the UK, new anti-discrimination laws enforced by the EU are about to upset the applecart once again. Like the recent commotion caused by its negative impact on female motorists, this detrimental development follows suit and negatively affects the final pension funds paid out to male policy holders.
You can only discriminate between two equal parties, but this surely becomes a case of applying good old fashioned common sense, whenever evidence highlights obvious differences between the two. Whether it’s disgruntled drivers or peeved pensioners, EU policies are starting to appear a little less anti-discrimination and more anti-common sense.
December 2012 saw the introduction of a law that effectively prevents financial bodies such as those who oversee your pension from differentiating between the sexes. Before this development, individual factors ranging from carelessness to the life-expectancy of both men and women were statistically calculated and applied to the equation, but no more.
Women are paid less when it comes to monthly pay-outs as women have been proven to outlive men, meaning that by the time of their death, they should’ve been paid around the same figure as men. But as this evidence has now been rendered redundant, women will receive the same level of payment as men, whose pay-outs are set to drop in order to maintain balance.
Now, male retiree pension holders could see as much as a £10k shortfall from their final pension pay-out. Whilst this means restricted spending for some, other less fortunate savers could be facing a largely unaffordable future, with nothing but crushed retirement dreams to show for any lifelong financial sacrifices they may’ve made in order to enjoy their golden years of retirement.
A £100k UK pension could now diminish by as much as 10% throughout retirement, meaning that just one in five will go unaffected as this percentage accounts for policies taken out by women. Exercising caution wherever your monthly pension pay-outs are concerned is now more critical than ever before; remember that it’s an open market, so don’t be afraid to reject dissatisfactory offers.
Saga DG Dr Altmann spoke of the EU ruling and its impact: “The worst affected are likely to be those with moderate amounts of pension savings who don’t have enough money to afford more flexible pension options, but have saved more than the minimum £18,000 which would allow them to avoid buying an annuity; it’s yet another devastating blow to people’s hopes of a comfortable retirement.”
Reputable and reliable financial advisors can help realise up to an extra three quarters of your monthly pay-out, simply by applying their expertise in order to regain most of the value of your pension. It can be something of an uphill struggle for retirees and pensioners alike, so even the most strong-minded and determined of folk are advised to seek the support you deserve.
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