Punter Southall welcomes the move by Legal & General and Hargreaves Lansdown to use postcodes to determine annuity payouts.
The providers partnered on Wednesday to pilot a scheme using postcodes as a risk factor to determine the annuity income it pays to customers. Joanne Livingstone, principal at Punter Southall, says: “The report that postcode might determine annuity payout is no surprise given the evidence that socio-economic factors have a very strong bearing on life expectancies. For example, those born in Swiss Cottage can expect to live almost 10 years longer on average than those in Kilburn." Providers traditionally use age and sex to assess life expectancy for conventional non-profit pension annuitie...
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