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Many retirees miss out on annuity boost
With over 1,500 conditions counting towards an enhanced or impaired life annuity, the General Lifestyle Survey by Just Retirement has found that around 60 percent of those who retire when they reach 60 could qualify.
However, despite the potential for such annuities to pay up to 30 percent more income annually than conventional ones, thousands of eligible retirees are missing out. Of the 112,000 annuities in the second quarter of 2010, only 12 percent had enhancements.
While the smoker annuity may be familiar to many people, most are not aware that the rates can also be higher for less serious conditions associated with other lifestyle factors, such as high alcohol intake, obesity, high blood pressure and high cholesterol. In fact, the first two are surprisingly common amongst the over 55s.
According to the report, over a third (39 percent) of people aged between 45 and 64 had a long-term illness, rising to more than half (56 percent) for those between 65 and 74 and two-thirds (67 percent) for the over 75s.
With enhanced underwriting now taking into account more combinations and lower levels of conditions, it is vital for individuals who could be eligible to complete a medical questionnaire and declare any illnesses or lifestyle choices when looking to buy an annuity.
