The first four Navigator principles all dealt with the human side of money. The fifth is the first to deal with money directly through spending plans and cash flow. Cash flow is the mechanism that enables you to merge life plans with financial plans to support your life goals and give clear direction to your financial strategies. It helps you to measure and balance the twin goals of leading a fulfilled life now with long-term financial security and responsibility.

Following a test case brought by Belgian consumer group Test-Achats on sex discriminations in insurance premiums, the European Court of Justice (EJC) recently ruled that from December 21st, 2012, insurers may no longer price their products based on gender. The existing European Union Gender Directive Opt-out Clause (Article 5[2] of Directive 2004/113/EC) that permits insurers to discriminate on grounds of gender will cease to have effect from that date.

This is the decision that was expected following the ECJ Advocate General’s opinion statement in September, 2010. Juliane Kokott emphasised the importance of the principle of equal treatment of men and women under EU law.

Pension experts have described the ruling as a “seismic event” that will have far-reaching repercussions on the insurance industry and its consumers. The move means that insurance providers will need to radically change the way in which annuities, life insurance and health insurance are priced.

The end date for gender-based annuity purchases is likely to lead to a male annuity “closing-down sale” in the run-up to Christmas 2012. Women are likely to wait until after that date to buy an annuity.

As for Life Cover, unisex life assurance rates should lower the cost of cover for men and increase it for women. This may lead to the insurance industry experiencing a re-brokering bonanza in 2013.

The Association of British Insurers (ABI) has issued a statement to say that this news is “disappointing” and that “Each company will have to respond to the ban in the way they feel is in their customers’ interests”.

It’s expected that the ruling will have a knock-on effect on the rates at which men can take income from drawdown because they are intended to reflect annuity rates. This may prompt another review of the newly issued HMRC/GAD drawdown tables.

Planning for Life will be following any developments and we will provide more details on this situation when we have had a chance to assess the judgement.

The recent publication of the draft legislation of the Finance Bill 2011 followed an announcement in June of significant changes to the way in which pension schemes are operated.

The most important changes are in the Annual Allowance (AA) and the Lifetime Allowance (LTA) and these have been trailed over the past few weeks.

However, changes involving the removal of the “requirement to annuitise by age 75” were subject to consultation and have just been announced for the first time.