How your location impacts your retirement

When you retire there is so much to think about but one of the most important things is how you are going to fund your life now you aren’t working.

When you contact a company there is a lot of questions that the company will want answers to. One of these is your location. Your location is important because if where you live is considered a “poorer” area, then you might be entitled to higher annuity rates.

The company will take a look at various points and decide what your average life expectancy is going to be depending on these things. If your area is considered poorer, or less wealth off than the national average, then life expectancy in these areas will also correlate as being lower and therefore your annuity rate will be enhanced.

It is not just your location that matters, though. There are many other things such as your health or whether or not you are a smoker, as well as your age and what your employment has been. The company uses an annuity rates calculator to find out what they can offer you.

For instance, if you have been a smoker, like a third of all people in the UK you could qualify for an enhanced rate because smoking is proven to cut your life expectancy by sometimes up to ten years.

It is crucial that you release every detail when comparing annuities, as any one of these could enable a higher annuity rate offer. Also, you should consider joint annuities as your partner’s health will also be considered in their annuity mathematics.