A UK pensions provider has launched a new initiative to offer annuity rates to customers based on their postcodes.
Legal & General has created the system after a pilot study by Hargreaves Lansdown found the initiative could be a success.
It is hoped that the introduction of the system will be a step towards increasing the sophistication of the annuity market, which many rely on for a guaranteed retirement income.
Discussing the move, Legal & General's annuities business managing director Simon Gadd said: "Our approach ensures that the longevity risk for our customers is more accurately assessed and is then reflected in the improved rates we are able to offer.
"Using other indicators rather than just age and gender to assess life expectancy is a natural evolution for the individual pension annuity market."
Established in 1836, Legal & General is one of the UK's leading financial services companies.
The company deals with around six million customers in Britain through its life assurance, pensions and general insurance products.
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