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| This is a graphical insert for the impaired annuity page of the website www.best-pension-annuity.co.uk. You can use this calculator direct from this page, or if you would prefer to see it in its proper setting please following the link to the impaired annuity web page. |
| It is a sad fact that despite many efforts made by the government and regulators to increase people’s knowledge many people still do not realise that when they come to take their pension as a retirement income they are no obliged to take the annuity offered to them by their existing provider. They have the right to shop around for the best deal from alternative pension providers. This right to shop for the best deal is known as the “Open Market Option”. The Financial Services Authority have conducted research which indicates that many people could improve on the annuity income they were offered, in some cases by as much as 30%. This 30% estimate is based upon standard annuity rates, but if you also qualified for an impaired annuity then the difference could be considerable. So how do you know if you qualify for an impaired annuity and therefore enhanced annuity rates ? The answer to that question could fill many pages of this website, furthermore each and every case will be different. We will discuss impaired annuities a little further below, but most importantly for our customers if they use our on-line quote form by answering a few simple questions we will be able to identify immediately if they do qualify for an enhancement. Impaired annuities can be given to retirees that have a shorter than average life expectancy through their lifestyle or medical conditions. More things than you may imagine can qualify you for an enhancement such as smoking, being overweight or excess alcohol drinking. If you drink 40 units of alcohol per week you could qualify. As an indication 40 units per week equates to just two glasses of wine per day, or a couple of pints of Lager. A survey by the Association of British Insurers (ABI) of 1,606 people approaching retirement found that only 34% of people have actually read their pre-retirement wake-up pack and just 26% of people had read everything in detail Research by retirement specialists MGM Advantage found that nearly three quarters (72%) of UK adults aged 55 and over are unaware that certain medical conditions could entitle them to a higher level of pension income through their annuity provider According to Towers Watson, of the 112,000 annuities transacted in Q2 of 2011, just 12 percent had enhancements when making an application. Our experience is that many more people would qualify. According to pension specialist Just Retirement, around 60% of those who retire at age 60 could qualify for enhancements. This data is based partially on a 2008 study by the ONS which showed that over two-thirds of those aged over 75 had a long standing illness. The report also shows that 39 per cent of those aged between 45 and 64 had a long-term illness It makes sense if you’re nearing retirement to have a health check not only for your own good but also to potentially benefit from any underlying health condition. Indeed, 40% of UK adults 55 and over have or have had high blood pressure and 33% have had high cholesterol, both of which are conditions which could qualify them for a higher pension income However, according to MGM, one in seven (14%) over 55s still working said it had been more than five years since they last had a health check with a further 11% not able to remember when they last had a test. If you fall into either of these groups it’s doubly important to have a health check before retiring and buying an annuity Conditions High blood pressure 40% Another condition that will impact your impaired annuity rates eligibility will be your weight. If you have an unhealthy BMI (Body Mass Index) this could again impact your life expectancy and as such you may qualify for enhanced annuities *Source : www.nevermindthebuspass |