Are Postcode Annuities fair?
Author: Billy Burrows Date: 01/11/2009 I divide the annuity market into three segments which I call small beer, middle Britain and fat cats. There is no insult meant to small beer clients and they often refer to themselves as just that and I spend a lot of time helping them get the best deal at retirement. In the past this group was not best served by the industry but now small beer annuities may be better value than fat cat annuities. The reason is that more companies are moving to postcode annuities. The first company to adopt this approach was L&G who launched postcode back in Nov 2007 with Norwich Union (now Aviva) and Prudential following. Now Saga is offering postcode annuity rates provided by Legal & General. The theory is simple; wealth is an important factor in working out a person’s life expectancy because those with more money can afford a better life style, including better health care. However this is not always true because as we all know some wealthy people have very unh
