UK - Annuity-based money purchase schemes could leave women with up to 15% lower returns than their male counterparts, claims the Liberal Democrats.
At the launch of the party’s Pensions Justice for Women campaign, it was noted that female employees are being cheated by DC schemes because their life expectancy is greater than that of men.
Liberal Democrat shadow Work and Pensions Secretary Steve Webb said: “At the moment if a man and a woman work for a company they pay the same contribution to the DC schemes.
Because annuities are lower for men than they are to women, women can end up 10% to 15% worse off from the same pot of money.”
Webb attacked the government further for placing greater reliance on occupational pension schemes and not addressing basic state pensions requirements for women.
By Simon Meek
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This week's edition of Professional Pensions is out now.
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