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Sales of enhanced annuities soar

Sales of enhanced annuities soar

Category: Annuities

Updated: 19/02/2013
First Published: 19/02/2013

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 It is now over 6 months old so the content may be out of date.

Volumes of enhanced annuity product sales have boomed in recent years, according to latest research, rising from £3,019 million in 2011 to £4.48 million 2012.

Demand for the products, which provide pensions to people whose medical conditions or lifestyles mean they have a lower than average life expectancy, have increased considerably over the past ten years.

Figures show that the total value of sales during 2002 stood at £651 million; however, this figure had more than doubled within six years to £1,444 million during 2008.

Over the course of 2011, total sales of enhanced annuities increased by 49%.

Mike Williams of Towers Watson, which conducted the research, said: "Despite the latest record level of sales by volume, enhanced annuities are still only around 20% of the total annuity policies sold.

"The current range of conditions and lifestyle factors that can lead to enhancements suggests a greater proportion of retiring consumers could benefit."

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 Any products featured may be withdrawn by their provider or changed at any time.

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