Pensioners may face "postcode lottery" on annuity rates

Pensioners living in the South or South-east could be subjected to a postcode "lottery" for the best annuity rate, as Norwich Union is now considering setting annuity rates according to local mortality rates and previous employment. Although research is still at an early stage, NU is looking at whether "lifestyle" annuities could replace the existing system of basing annuity prices on your age, gender and health. At present, two men of the same age and health are likely to receive roughly the same rate of annuity, however, Norwich Union is challenging the idea that teachers, for exampl...