Something of a shouting match going on here. The annuities that are often bought with pension pots (in fact, it\’s still law that by age 75 you must have spent the pot on such isn\’t it?) are to be varied by likely lifespan.
Seems entirely fair: annuities already vary by sex and it\’s possible to get better rates by revealing that one is a smoker. Both sex and smoking makle a difference to expected lifespan so it\’s actuarially sensible. What is getting some people here is that the variance will also be determined by postcode. But as we know that those in wealthier areas live, on average, longer than those in poorer, this also seems sensible.
It is, if you look at it with the right squint, a reduction in inequality.
Shadow Secretary of State for Work and Pensions Chris Grayling said: “I’m worried that people will be penalised for looking after their health. The whole principle of the pension industry is that risks are pooled.
Dear Lord, no ondwer were so screwed up is the Minister responsible thinks that. The pensions industry is about savings and the possible earnings from them. It\’s the insurance industry which is about pooled risks. Sheesh.