The amount of income that you could expect from an annuity plan will vary significantly from person to person, with insurers taking a number of factors into consideration to decide this. The following all tend to affect the income rate offered:
- Sex (until December 2012 - see below)
Sex is a major deciding factor on how much annuities for women will pay out. This is due to the fact that, statistically, women have a higher life expectancy rate than men, and therefore insurers are therefore more likely to have to pay out for longer. As a result, the average woman should expect to receive smaller income from an annuity. However, as every insurer could offer such varying income amounts, it would be advisable for women to compare quotes from several different providers to ensure that they get the best deal possible.
In a European Court of Justice ruling in May 2011 insurers will no longer be able to discriminate against women on offering lower annuity pensions compared to men because they have on average higher life expectancies. This ruling takes affect from December 2012. The equalization of annuity rates means that rates for women will increase while rates for men will decrease.