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Over 55s missing out on retirement income

Over 55s missing out on retirement income

Category: Annuities

Updated: 30/04/2012
First Published: 30/04/2012

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 It is now over 6 months old so the content may be out of date.

Millions of people aged 55 and over could be missing out on thousands of pounds in retirement income because they are unaware of the availability of enhanced annuities.

Sixty per cent of people aged 55 and over have received medical treatment for conditions which would qualify them for an enhanced annuity, according to MGM Advantage.

Enhanced annuities factor in medical and lifestyle conditions when calculating the rate of income available and the difference between standard and enhanced rates can be significant.

Conditions include high blood pressure and high cholesterol, while smokers also qualify for an enhanced annuity, and could receive an extra £1,000 every year by choosing an enhanced product.

Yet 72% said they are unaware that certain lifestyle or medical conditions could qualify them for a better retirement income.

A man aged 65 with an average impairment could receive an extra £8,684 income for the first five years of retirement simply by making the right choice.

Andrew Tully of MGM Advantage said the figures highlighted why more work needs to be done to make people aware of all of their retirement options.

"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," he added.

"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."

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