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Men’s annuity income will fall less than expected but property as a pension is still worth exploring
Men’s annuity income will fall less than expected but property as a pension is still worth exploring
Following the introduction of ‘unisex’ rages, the insurer Prudential has indicated that men who buy annuities will find that their income will fall by less than expected.
Maidenhead,
Berkshire,
United Kingdom
(prbd.net)
17/01/2013
Following the introduction of 'unisex' rages, the insurer Prudential has indicated that men who buy annuities will find that their income will fall by less than expected.
This means that under the new gender neutral rates, a man of 65 years will see his pension income reduce by 1.5 per cent whilst a woman will receive a 6.5 per cent increase.
For the first time, annuity rates are exactly the same regardless of gender whereas previously men received more than their female counterparts. However, a man of 60 years of age will get 2.5 per cent less whereas a female of 60 will see an increase of 4.5 per cent.
Traditionally, men have received better annuity income as they die earlier but this calculation was banned from December last year.
Gill Alton runs Alton Property Partners, offering a residential investment property service to help you build a portfolio for a secure financial future. Alton Property Partners provides a comprehensive and personal Property Portfolio Building Service for buy to let investment in the UK. Gill believes that property as a pension could be the answer. She says:
"The implications from the Gender Directive are just one more thing causing uncertainty in an already wobbly annuity market. How each Pension Provider interprets and applies the Directive is yet to be seen, will they - move the male rates to match the lower female rates? Will they move the female rates to match the higher Male rates? Or will they meet half way?
"As this article states Prudential have announced they are going with Option 1 above, which has meant only a drop of 1.5% for males, but as this article also goes on to point out Prudential were never really competitive in the first place, so it will be interesting to see how the other major players play out this game.
One thing is for sure; those heading toward retirement need to make their own plans and work alternative income streams, which removes them from simply being a pawn in the whole pension game.
Having the peace of mind that you have income coming in from other routes can ensure your retirement is how you envisaged it to be 'relaxing and enjoyable'. That's why property as a pension is worth considering.
"At Alton Property Partners our main focus is working to deliver this peace of mind via investment in property. "
Notes to Editors
Gill Alton is the founder of Alton Property Partners, which provides a comprehensive and personal Property Portfolio Building Service for buy to let investment in the UK. To find out how property could be the answer to your pension worries, and to find out more about property as a pension click here. Alton Property Partners manage the entire investment process, from sourcing property at a discounted value, co-ordinating the Mortgage, arranging the refurbishment, right through to ensuring it is ready for the rental market
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About
Gill Alton is the founder of Alton Property Partners, which provides a comprehensive and personal Property Portfolio Building Service for buy to let investment in the UK.
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