Does where I live make a difference?
If you are considering your retirement options then you may well have considered looking into the purchase of an annuity to provide you with a stable source of income for the remainder of your life, and if this is the case then there are a number of factors that will need to be taken into consideration before your annuity income is determined.
Where you live can play a crucial factor in determining the amount of annuity income that you will receive and so it’s an important factor to take into consideration when purchasing an annuity. In general, an annuity income is determined by your life expectancy and where you presently live can have a direct impact on your current life expectancy.
What impact does where I live have on my annuity?
Where you live can have a direct impact on your annuity and in many situations the difference between postcodes can be quite significant. If the life expectancy in your area is higher than that of the postcode down the road then this will be taken into consideration and you could therefore find yourself receiving a lower or higher annuity income depending on the area that you live in.
What else could impact my annuity?
Many different elements can have an impact on your annuity income and some examples of this include:
- Your health – your health is a determining factor in your life expectancy and generally if you are in good health with no long-term injuries or illnesses you will be likely to have a much higher life expectancy than someone who suffers from poor health
- Your lifestyle habits – if you are a smoker, heavy drinker or a recreational drug user then this can have a direct impact on your life expectancy and therefore your annuity income
- Your age – in general if you are an older person then you will tend to have a shorter life expectancy than someone who is much younger and you will often find that the older you are the higher annuity income you could expect to receive from a provider.