Gender equalisation and guaranteed annuity rates

Jenny16

I have a pension plan with Phoenix that has a guaranteed annuity rate.

I've recently been given an annuity quote of 94.2 at maturity. If I was male I would get 109.3.

So am I correct in assuming that recent legislation equalising annuity rates by gender doesn't apply to GARs?

dunstonh

So am I correct in assuming that recent legislation equalising annuity rates by gender doesn't apply to GARs?

Correct. It doesnt apply because they were set before G day.

lindabea

dunstonh wrote: »

Correct. It doesnt apply because they were set before G day.

That's very interesting to know. Thank you Dunstonh. So does it also follow that a company cannot revise the GAR on it's policies?

dunstonh

So does it also follow that a company cannot revise the GAR on it's policies?

It cannot. It is in the contract. However, be aware that some providers will only pay GARs a specific way. e.g. annually in arrears with no guarantee. So, say you wanted monthly in advance, they can then offer their normal rate for that (although some contracts say they will revise the guaranteed rate appropriately)