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Enhanced annuities making themselves known

Enhanced annuities making themselves known

Category: Annuities

Updated: 28/05/2009
First Published: 28/05/2009

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

People's awareness of enhanced annuities appears to be growing after it was revealed sales of the product have continued to expand.

Sometimes also referred to as impaired annuities,enhanced annuities provide bigger pensions to people with serious medical conditions or negative lifestyle factors such as smoking or weight problems.

According to a recent survey, UK retirees are missing out to the tune of £56 million by not taking advantage of such products.

It was also estimated that over 150,000 people could increase their retirement income by purchasing an enhanced annuity as opposed to a standard one, as rates are calculated individually and based on the applicant's personal circumstances.

According to Watson Wyatt, total sales in the first quarter of this year amounted to £443 million, an increase of 9.3 per cent on the previous quarter, and should grow further in the coming months and years.

"These forms of segmentation are good news for consumers as they provide more options with which to maximise their income from pension savings," said Andy Sanders, senior consultant at Watson Wyatt.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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