Insurance companies have known for some time that where you live can have an impact on your life expectancy. The rising popularity of ‘postcode’ annuity rates could soon be followed with an assessment of wealth and other factors to determine a tailored life expectancy.
New analysis by longevity experts Club Vita has found that there is a strong correlation between high affluence and increased life expectancy.
Club Vita analysed the link between how much people earn and life expectancy levels on a national scale. It revealed direct links between the two.
The research found clear parallels between areas of high income and the chance to enjoy a long retirement. By contrast, many poorer areas of the country face a much shorter life after work.
This will be shortened further still with the State Retirement Age set to rise in the future.
To give an example of how accurate this correlation between wealth and life expectancy can be, in 70% of local authorities it was found that household income could predict the area’s life expectancy to within a single year.
Whilst there is a strong correlation, the link is not universal across the UK.
There are several anomalies where the direct link between affluence and life expectancy breaks down. People living in Mid and West Wales buck the trend, as residents there are living beyond the UK average despite earning less than average.
In addition to money, other factors such as lifestyle, occupation, gender and retirement health all key contributors to life expectancy.
With annuity providers already requesting detailed information from customers before quoting rates, research like this could result in an even greater level of disclosure at outset to benefit from the most competitive annuity rate in retirement.
