Back to Top

EU ruling 'will devalue pensions'

Consumers will find their pensions affected by the European Union's (EU's) decision to stop providers pricing products on risk and gender.

Dr Ros Altmann, pensions expert and financial adviser, said the ruling is "a further future blow to Britain's already struggling pensioners", as annuities are likely to cost more in the coming years.

She continued by explaining that four-fifths of annuities are purchased by men, so they "will become more expensive for the vast majority of buyers".

What's more, the impact of legislation surrounding auto-enrolment is due to come into force in 2012, at the same time when the cost of saving is increasing.

However, Minister for Pensions Steve Webb believes the Pensions Bill will improve savings for consumers, as those who may neglect to sign up to a savings scheme will automatically be affiliated with a company plan on their appointment. But Dr Altmann believes the rising cost of premiums will put individuals at a disadvantage. ADNFCR-2183-ID-800437416-ADNFCR

© 2009 Adfero Ltd. All rights reserved. Any views and opinions expressed in news articles are not those of Prudential. News supplied by Adfero DirectNews

For UK Adviser Use Only - Not Approved For Use With Clients