Retirees missing out on almost £57 million - Annuities - News - Moneyfacts


Retirees missing out on almost £57 million

Retirees missing out on almost £57 million

Category: Annuities

Updated: 25/03/2009
First Published: 24/03/2009

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 It is now over 6 months old so the content may be out of date.

UK retirees are missing out to the tune of £56.6 million by not taking advantage of enhanced annuities.

Over 150,000 people could increase their retirement income by purchasing an enhanced annuity as opposed to a standard annuity, as rates are calculated individually, based on the applicant's personal circumstances.

Therefore, people with certain medical or lifestyle conditions, such as heart disease or smoking habits, could significantly improve their income after retirement by opting for enhanced annuities, according to LV='s 'Missing Income' report.

A survey carried out by Watson Wyatt in January revealed that just 27,482 people annuitants purchased an enhanced annuity in 2008.

"A lot of annuitants still feel uncomfortable about revealing lifestyle or medical conditions to a financial adviser," said Matt Trott, head of annuities.

"However, if people are open about their smoking habit, or the fact they suffer from diabetes, it will ultimately help them secure extra income for their retirement - so it's vital they are upfront about these aspects."

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 Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Secondary annuity market scrapped

The Government is cancelling plans for a secondary annuity market, citing concerns about consumer protection. Given there were fears that many could be ripped off – and that it wouldn’t be right for most – the decision has been largely welcomed.

2016 ILP Moneyfacts award winners announced

The winners of the 2016 Investment Life & Pensions Moneyfacts Awards were announced last night at a glittering ceremony held at the Lancaster London Hotel, amid much expectation and excitement.

2016: the worst ever year for annuity income

Tomorrow marks Pensions Awareness Day (PAD), yet our latest research doesn’t bode well for the sector – at least not for those seeking an annuity, with the data showing that annuity rates are on track for their biggest ever annual fall.