Those retiring since 2012 are getting around 20 per cent less from an annual annuity than those outside Europe because of EU regulations. It has led to claims Britons are being ripped off, with Brussels bureaucrats once again interfering in British affairs. Under the Solvency II directive, insurance companies, including pension providers, must keep a lump sum in reserve to ensure they can always meet claims. There are similar rules in the United States but the amount kept aside as a buffer is much smaller, meaning there is more money available for customers. Although the risks are slightly higher as a result, American pensioners pocket around £1,000 more a year than people of retirement age in the UK. The average British private pension annuity is around £5,700-a-year. Full story >>
To slash something is to reduce it by a large amount. • The budget had been slashed by £3 million. • The company has slashed production by 50%.