Axa warns EU rules to hit UK pension incomes

French insurer Axa has said UK retirement incomes from annuities have been too generous in the past and will be cut once new European rules are introduced.

People will get less return for their pensions, but they have had too much of the profits because it is such a competitive market," said Nicolas Moreau, chief executive of Axa UK.

UK annuity providers are likely to have to raise capital and cut payouts to pensioners due to European Union rules set for 2012.

The chief executive of life insurer Legal & General warned that the value of UK pension savings is threatened with a 10-20 percent cut under the new EU rules.

Posted: 06 August 2009