Pension Payouts To Be Decided By Postcode

Prudential customers are going to see their postcode being a factor in how much pension they receive when they use their annuity to buy a regular payment pension.

According to a spokesperson from the Prudential the postcode of an individual can indicate how healthy they are likely to be and also their typical life expectancy. From this they can then determine a suitable pension payment. A person living in an area where life expectancy is higher than average would expect to receive a smaller pension than a person in the opposite type of area. This is because they would receive more payments over the period.

The good thing about postcodes is that we all have one, said the Prudential representative, and there is a lot of data held about them since they have been used in marketing for many years.