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MSE News: Insurance costs could rise before 2012 gender ban
Former_MSE_Guy
Posts: 1,650 Forumite
This is the discussion thread for the following MSE News Story:
"The overhaul comes into full force on 21 December 2012, but many experts expect insurers to hike prices sooner ..."
"The overhaul comes into full force on 21 December 2012, but many experts expect insurers to hike prices sooner ..."
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Comments
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Insurance prices could go up. This qualifies as news?0
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As a result of the ruling, young women's car insurance costs are likely to soar, men's annuity rates (which translates into retirement income) are likely to plummet while women may pay more for life insurance and men more for health insurance.
The article is dreadful. Look at the wording... "plummet" & "soar" being used is classic journalism to sensationalise the changes. Other sections include words like "rocket". I really wish MSE would stick to facts and present things with a more level headed point of view
Annuity rates are not likely to plummet. Unisex rates already exist for protected rights and are mandatory. So, there will not be a difference on protected rights. Non-protected rights will see a move to unisex rates which will see a small decrease for some. However, with interest rates likely to rise, the annuity rates will follow. So, that would offset that. Plus, of course, you dont even have to buy an annuity any more if you dont want to. That is a greater risk to annuity rates as the pool for cross subsidy reduces and mortality gain is reduced.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
There's no way the insurance companies will use this to boost premiums across the board though! :laugh:0
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Plus, of course, you dont even have to buy an annuity any more if you dont want to.
Can you clarify this statement.
I've googled but all I've found is that from April you don't have to take an annuity if you have > £20K annually.
So currently it's mandatory for everyone at 75?
I can't find a lot on this on google so I'm not clear.0 -
I've googled but all I've found is that from April you don't have to take an annuity if you have > £20K annually.
Currently, you have to buy an annuity from age 77 (was 75 until last year). You could go into an ASP but it want used by most as it was a near useless option unless you have millions. So, for most, annuity compulsion existed at 77.
From next tax year you wont have to buy an annuity but can go with USP (unsecured pension income) for the rest of your life and that of your spouse with any remaining post going to your children minus a tax charge (which equates to taking tax relief/tax free growth back more or less). This option already existed but had the 75/77 issue. There are going to be two variants. One for those with over £20k of guaranteed income and one for those that do not.
Look up unsecured pension or its old name of income drawdown.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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