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.
A recent survey has shown that those aged 50 and over, the typical Saga Insurance customers, are concerned about how the credit crunch will affect their pensions and investments.
According to the survey, carried out by Millennium, over 75 percent of these Saga Insurance aged respondents believe the credit crunch will negatively impact on their investments, whilst almost 60 percent are expecting their pension provisions to be affected. However it is not all doom and gloom, since over three quarters of the over 50s are also saying they will not give up holidays and eating out.
People aged 50 and over tend to have a good view of the economy, having experienced its ups and downs over their lives. This is why the opinions of the Saga Insurance customers are valuable and worth bearing in mind no matter what age you may be.
