Certain medical conditions could entitle you to a higher pension income
According to retirement income specialist MGM Advantage, 60% of people aged 55 and over have received medical treatment for conditions which would qualify them for an enhanced annuity, and yet 72% were unaware that certain conditions could qualify them for a better retirement income.
Conditions such as high blood pressure, diabetes and high cholesterol could mean an individual qualifies for an enhanced annuity, with as many as 70% of retirees potentially qualifying.
A smoker with high blood pressure would receive £1,000 extra income every year by choosing an enhanced annuity
Andrew Tully, MGM Advantage pensions technical director, said: “With such a high proportion of our retirement nation experiencing medical problems, it is of deep concern that many people remain unaware of enhanced annuities. Despite as many as 70% of retirees potentially qualifying, recent industry data showed that only 2% bought an enhanced annuity in the non-advised market in 2011, which is shocking.
“When you look at the difference in rates, a man, aged 65 with average impairment could receive an extra £8,684 income for the first five years of retirement simply by making the right choice. Which is why, as an industry, we need to work hard to ensure people are made aware of all of their options.”