Legal & General gender neutral annuity pricing.
20 December 2012
As previously outlined, Legal & General's annuity business has implemented gender neutral pricing from today, Thursday 20th December in respect of its range of pension annuity products.
Compared with the previous gender specific pricing, the gender neutral pricing has seen a reduction in male rates of circa 3% and an improvement in female rates of circa 3.2%, on average. For joint life cases the impact is less with a circa1% improvement for 1st life female and a 1% reduction for 1st life male, on average. There will be some variation in these figures for example, the different age of customers and if options such as escalation are included.
All quotes for our pension annuities issued from today will be on a gender neutral basis and will have our normal rate guaranteed period of 18 days.
Those customers, who requested a gender specific annuity quote between the 1 - 19 December, still have the extended guarantee period of 40 days from the date of their quote, to arrange for the funds to be with us. However, the signed completed application must be with us by close of play today, Thursday 20 December, for customer to take advantage of the gender specific pricing used in their quote.
Tim Gosden, Head of Strategy for Legal & General's individual annuity business said: "We believe that the changes we've implemented today in respect of the introduction of gender neutral rates are balanced and reflect the spirit of the Directive.
Gender is only one factor that we use to price our annuity products and other factors such as health and lifestyle can have a much greater impact on life expectancy and the resulting annuity income a customer may receive. So it's really important that customers do not focus on this change alone, but shop around for their annuity. This includes being prepared to disclose as much information as possible about their health and lifestyle to potentially secure a better long-term future income for themselves."
To find out more about this range of annuities Legal & General offers go to, www.legalandgeneral.com/annuities
For more information please contact:
t: +44 (0) 1737 375369
m: +44 (0) 7788 926790