Norwich Union Postcode Annuity

 Norwich Union Postcode Annuity

Norwich Union is to introduce postcode annuity pricing on maturing pensions and open market option transfers from September.  The move is part of a restructure of annuity pricing, which will also now take into account the policyholder’s marital status and smoking habits.  The provider says there will be a 2 per cent swing between the best and worst rates using the postcode system, it will take the form of nine groupings based on life expectancy in specific areas.

Our view

Legal & General already operate postcode annuities and we suggest it is a fairer way to price annuities as people in poorer areas with lower life expectancy will no longer subsidise wealthier people.

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