The lottery that is your postcode

Posted in 'Neighbourhood' by Barry Stamp

21 November 2011

Your postcode is probably one of those things you take for granted – it’s always there at the end of your address, and in all honesty, isn’t very exciting.

But where you live determines much more than you’d think – and will raise your eyebrows.

For example, local authorities can choose whether or not to buy in specific drugs – meaning that care for critically ill patients may differ in two neighbouring regions.

The rate at which a private pension is paid stands a good chance of being heavily influenced by your postcode. Some pension providers are starting to determine their annuity rates – which determine the amount you receive for your pension in retirement – according to where you live.

This is because although the UK as a whole is recognised as wealthy and developed (even in the middle of the credit crunch), there are still huge differences across the nation in terms of life expectancy. By taking these variations into account, pension annuities can be better assessed and rates adjusted accordingly. Generally speaking, someone in a more affluent area with a longer life expectancy can expect lower payments than someone who lives in a lower rated area.

Other factors such as age, marital status, health and gender play important roles in determining your payments, but as the average life expectancy in the UK continues to increase, the use of your postcode to help determine annuity rates is becoming more commonplace.

Other parts of everyday life that are influenced by your postcode include property prices, superfast broadband availability and ‘financial risk’. Even the amount of junk mail that drops through your letterbox is determined by your postcode.

If you live in Plymouth or Nottingham, for example, you may be regarded by marketeers as living in a 'typical' UK city, so you'll find that more products and services will be tested on you before being released to the wider general public. Febreze is an example of a product that the residents of Plymouth have had, well before the rest of us.

Identity fraud in the UK is very clustered - some streets are major hotspots - in places like Balham - and others are completely untouched.

You can see how your own postcode fares and whether you live in an identity fraud hotspot by using our free Check Any Postcode service. You can search as many times as you like, anonymously and completely free – simply click here and insert your postcode in the box in the top right hand corner.