Gregory Campbell – 2014 Parliamentary Question to the HM Treasury

The below Parliamentary question was asked by Gregory Campbell on 2014-04-09.

To ask Mr Chancellor of the Exchequer, what estimate he has made of the likely change in annuities in 12 months’ time for the average 65-year-old (a) man and (b) woman.

Mr David Gauke

At Budget, the Government announced significant reforms to the pensions market, giving people greater choice about how to access their defined contribution pension savings. For many people, purchasing an annuity will remain the best way to secure an income in retirement.

These reforms will help consumers choosing to buy an annuity to get a better deal in a much more competitive market place. The Government expects the change to the pensions market to stimulate innovation and new competition in the retirement income market. The shape of the market will now be driven by the choices consumers make, placing power back into the hands of savers.

In December 2012 Government passed legislation to amend the Equality Act and ban gender-sensitive pricing. This means that annuity providers can no longer use gender as a factor when calculating annuity offers.