In light of the decision made by the European Union to ban “gender based” financial products pricing, women will see an increase on insurance premiums and men get lower pensions.
The European court of justice in Luxemburg has made a ruling that using gender when setting insurance premiums for car, medical and even pension schemes breaches the European Union Equality law.
The court gave a statement saying “Taking the gender of the insured individual into account as a risk factor in insurance contracts constitutes discrimination”
The new law comes into effect from December 2012 which will change the practise across Europe basing insurance rates on road accident statistics of both sexes and life expectancy.
Women now face a possible 25% increase on car insurance premiums and pension income for men could possibly fall between 5% and 10%
Statistics show that men don’t live as long as women, which men benefit from higher annuity rates. Men ages 65 get an income of £3,274 from a £50k pension and women get £2,993 in comparison.
Bad deal all round? What do you think?
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