MGM Advantage on Enhanced Annuity Markets

MGM Advantage RESPONDS TO TOWERS WATSON’S REPORT ON THE GROWTH OF THE ENHANCED ANNUITY MARKET

- Enhanced annuities currently pay an average of 22% more than standard annuities

Aston Goodey, Director of Sales and Marketing, MGM Advantage comments, “Enhanced annuities have experienced a strong growth in sales in recent years and we aren’t surprised to hear that they now account for almost one in five of annuities sold.

“The products offer fantastic value, paying out around 22 per cent more income each year compared against standard products. Over the course of retirement a man eligible for an enhanced product with a £50,000 pension pot will find themselves over £12,500 better off(1).

“Awareness of enhanced products is on the up and those approaching retirement increasingly realise that enhanced products are open to people with relatively minor health conditions such as high blood pressure.

“However, too many people still take the first annuity offered to them and fail to shop around or investigate whether they might be eligible for an enhanced product. Once you have converted your pension pot into an annuity there is no going back, which makes this one of life’s biggest financial decisions. Anyone on the verge of retirement needs to consider their options very carefully to ensure they maximise their retirement income pot and should therefore seek professional advice.”

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For further information:
Citigate Dewe Rogerson

Jo Skinner 020 7282 1092
Sophie Woodcock 020 7282 1072

Notes to editor
(1) Based on the MGM Advantage Annuity Index which is an analysis of the whole annuity market. Data is provided by Moneyfacts Life and Pensions.

About MGM Advantage
www.mgmadvantage.com

History: Based in Sussex, the life assurer opened its doors in 1852 as Marine and General Mutual Life Assurance Society, to fill the poorly-met insurance needs of seafarers and traders.

MGM Advantage is a new name in the UK retirement income market. Formerly known as MGM Assurance, the company rebranded as MGM Advantage, Designs for Retirement in June 2008 and repositioned the company as a retirement income specialist.

Its launch product – an Enhanced Annuity – is designed to provide additional income in retirement for people with any health conditions or a poor medical history and is distributed through independent financial advisers (IFAs) across the UK.

MGM Advantage is a mutual society owned by its members, and manages assets in excess of £1.4 billion. MGM Advantage’s commitment to customer satisfaction is backed up by an industry-leading customer charter, which promises high quality service and a £25 no-quibble payment to any customer who hasn’t received the level of service they expected.

MGM Advantage Designs for Retirement, MGM Advantage and the MGM Assurance logos are Trade Marks of Marine and General Mutual Life Assurance Society.