Starting from Monday 11 August the Prudential is going to decide annuity rates based on where people live, using their postcode as a guide.
A persons postcode can suggest expected life expectancy and typical health backgrounds of people, leading to the Prudential being able to offer rates that will better match the risk with the amount offered. Those in areas of lower life expectancy and poorer health will be likely to receive bigger pension payments from their annuity since they will be expected not to live as long as someone in a better area.
A Prudential spokesman said that the postcode is an excellent way of determining risk and pension payment since everyone has one. He went on to say that the postcode would make a difference of only 5 percent when comparing highest pension payments to lowest, with other factors also being taken into account to determine the most suitable amount.
As the cost of living goes higher and higher in the UK so more people are looking at retiring to a different country say Saga Insurance.
A Saga Insurance spokeswoman explained that currently less than 1 percent of those retiring move abroad in order to cut their living costs, though there has been much more interest in the idea recently. It will help those about to retire that their property values are at all time highs. This gives them a good base from which to set up home abroad.
There are many factors to consider when living abroad said the Saga Insurance spokeswoman, with costs being just a part of the equation. Lifestyles are very different overseas and it can sometimes be difficult giving up things that have been part of life for so long.
LV=, also known as Liverpool Victoria, has committed to get tax free cash to their Annuity Pension holders within five days of receiving all relevant funds and documentation. If this is not achieved they have promised GBP1000 compensation.
Earlier this year Liverpool Victoria unsecured pension holders were told that they would get a similar deal so this step is a continuation of LV=s steps to put the customer needs first. Lump sum payments from pensions are a vital aspect of the whole retirement package, so receiving the funds promptly takes a great deal of stress out of the process.
A spokesman from the organisation said that Liverpool Victoria was well aware of their customers needs and was doing all it could to streamline the process for customer benefit.
