European Court of Justice ruling will change the future of retirement ...

Pension experts have branded the European Court of Justice gender ruling a “seismic event” that is set to reshape the retirement landscape.

The ECJ published its ruling today in the test case brought by Test-Achats, who claimed it was gender discrimination to charge men and women differently for products such as annuities and life insurance.

The ruling will not be applied until the end of next year but will affect car insurance, life insurance, private medical insurance and pension schemes, as well as the cost of buying an annuity.

Pension experts have branded the European Court of Justice gender ruling a “seismic event” that is set to reshape the retirement landscape.

The ECJ published its ruling today in the test case brought by Test-Achats, who claimed it was gender discrimination to charge men and women differently for products such as annuities and life insurance.

The ruling will not be applied until the end of next year but will affect car insurance, life insurance, private medical insurance and pension schemes, as well as the cost of buying an annuity.

This ruling will fundamentally reshape the retirement landscape. It is now imperative that everyone shops around with their pension fund at retirement; if they do not they risk ending up with a homogenised standard–issue annuity which is almost certain to be a poor deal for them. 

RIS will be monitoring the reaction of the insurance companies and issue further information regarding annuity rate movements as it becomes available.

In my opinion it seems that common sense has definitely left the building!! It is essential for insurers to use gender to calculate risk based on solid actuarial evidence and statistics. It is price differentiation, not discrimination and in this bid to create a “perfect world” it means that consumers will yet again suffer.

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