While it seems that the cost of so many different services and products depends upon where you live in the country, you can now add your pension payments to that with news that Legal and General have just completed a pilot a scheme which will see high pension payments in areas where life expectancy is short.  The scheme is now being rolled out nationally, although there are concerns that for those receiving higher pensions, people in other areas of the country may see their pension payments slashed.

Legal and General have also announced plans to consider the lifestyle of their customers as another factor for the level of pension payments they will receive, with concerns that the more complex system will allow pension providers to hide reductions and also slash their own costs.  Even though the difference between the top pension payments and the lower rates (varied by region) will initially add up to no more than two or three percent, there is obvious potential to increase this figure in due course. 

However, there are many supporters of the scheme with concerns that those living in low life expectancy areas are actually subsidising the payments of the more wealthy, affluent areas.  Perhaps there is something in the scheme , but then again what would happen if you moved from one area of the country to another in retirement? What would happen if you moved overseas?

There are still many questions to be answered, but it seems that the whole industry will now move down this path – another postcode lottery!