Under a European Union bid to encourage equal access to goods and services, the typical gender-based annuities could be replaced with unisex annuity rates. Currently the anti-discrimination consultation allows the difference in annuities, providing it is proportionate.
However, the differences in the way the two annuities are managed will become apparent in 2010 when the member states report will be published, detailing the progress that has been made.
Our view
Unisex annuity rates are poor value for all concerned due to the high risk-premiums that are built in. This move would be worse for UK investors and we believe it is only because some of our European cousins to not have systems to cope with gender based annuities and fear UK providers taking market share.