Editorial:

MISSING OUT ON PENSION ENTITLEMENT? by Mark Walker of Mark Walker Financial Services

Pensioners are missing out on thousands of pounds in extra retirement income because they fail to declare medical conditions which could give them higher annuity rates. Only one in 10 of annuities bought each year are “enhanced” – which means they are set at a higher rate because of a buyer’s health problems.
However new research by annuity specialist Just Retirement indicates that more than half of those retiring could in fact qualify for an enhanced or “impaired life” annuity. In fact there are 1,500 conditions that can count towards an enhancement and with annuity rates at record lows; it’s worth shopping around to find out whether you could receive a higher payout. Getting an enhanced annuity by asking the provider to take into account various health or lifestyle factors such as high blood pressure, diabetes, smoking, obesity and alcohol could increase your retirement income by a third.

And even if one condition, such as high blood pressure that does not require medication, is not enough to qualify you for a higher payout on its own, you may well find that it will have an impact if it is taken into account alongside other factors such as high alcohol consumption, for example. The sophistication of underwriting by many enhanced annuity providers has improved dramatically over the past six or seven years to take into account more combinations and lower levels of conditions.

It is also relatively simple to find out if your lifestyle or your medical history will enable you to get an enhanced annuity as the industry has produced a medical form that you need only fill in once. If you take any type of prescription medicine at all, it is definitely worth filling in the common medical form.

It is also worth remembering that your health and lifestyle are not the only things that could affect the annuity payment you receive. If you are concerned about the impact that inflation is going to have on your annual payments in the future, for example, you may wish to consider an index-linked annuity. Taking this approach ensures that the value of your payments will not be eroded by inflation as time goes by. The downside to this, however, is that you will receive lower payments in the early years.

Consulting Mark Walker Financial Services on 01271 379781 who is a local Independent Financial Adviser that specialises in this area is a key step.