Some consumers might not be fully informed about the extra income that an enhanced pension annuity could deliver. That’s the warning in an article from Your Money titled ‘Could you qualify for an enhanced annuity (and not know about it)?’ written by deputy editor Paloma Kubiak.
An enhanced annuity pays higher rates to people with any of 1,500 qualifying medical or lifestyle issues. The higher rate is possible because providers assume they won’t live as long as a normal healthy person.
In her article, Paloma refers to the fact that each annuity provider is obliged to compare its annuity quote with what competitors in the market can offer. She warns: “The comparison will only be based on the facts which the provider knows about the consumer, and may not include the enhanced annuity offers which a thorough fact find would uncover.”
Paloma also quotes Stephen Lowe, group communications director at retirement specialist Just Group: “We’re all different and we all have different life expectancies. That matters not just for how long we’ll live, but also because someone with a shorter life expectancy is likely to see an increase in the amount their guaranteed income for life will pay them each year – this can typically be as much as 25%.”
“When it comes to buying an annuity, your adviser should ask you some searching questions about your health – and if they don’t, make sure you tell them about any medication or health conditions you may have, or had, even if you feel pretty well.
“What might seem insignificant to you could make a significant difference to your income in retirement. Before you purchase, make sure to ask if your personal health and lifestyle factors have been taken into account.”
Enquirers to Retirement Line are made fully aware of the availability of enhanced annuities and are asked the right detailed questions to ensure they receive the highest enhanced rates.
With regular underwriting training, our annuity specialists’ knowledge and experience ensures over 80% of our 2,000 monthly enquirers qualify for an enhanced rate, whereas the national average is around 60%.
Please contact us on 0800 652 1316 or firstname.lastname@example.org if you would like to find out if you are eligible for an enhanced annuity, and what the best rate would be.