More to report on fresh postcode annuities to find best UK pension annuity rates. Canada Life has just announced it plans to introduce postcode annuity rate pricing across its range of annuity products, to join other major insurance companies in the retirement market, the likes of Prudential, Legal & General and Aviva (was Norwich Union). The insurance company will take into account a client’s age, sex and residential postcode to calculate the annuity rate to be offered, adding that the difference in rates between the cheapest and most expensive postcode annuity rated areas will be around 7%, which I consider quite substantial.
Canada Life said this system of pricing ”better reflects life expectancy”, which although works out pretty nicely for the less well off, does mean that the healthier middle classes living in suburbia will lose out. In a recent statement, Canada Life said that as previously announced, they do intend to introduce postcode annuities to their range of retirement planning products. Canada Life will announce to the market when these products are available.
Bob Bullivant, chief executive of retirement income and annuity specialist Annuity Direct, said with postcode pricing like this, older people who diligently eat healthily to get their five a day (fruit, veg, etc.), don’t smoke, drink in moderation and get plenty of fresh air and exercise, are penalised by the insurance companies. He added that the postcode pension annuities rates system does work in favour of those residing in more deprived areas, but he is not so sure these are altruistic, Robin Hood type motives, and he said that it is clearly to the advantage of the big insurance companies to pay more with an annuity for a shorter period of time, and, with Canada Life’s entry to the market we can almost certainly anticipate the vast majority of insurers discriminating by postcode in a similar way eventually, probably sooner rather than later.
