Press Release

three quarters of 55s+ COULD MISS OUT ON ADDITIONAL INCOME IN RETIREMENT

- 59% could qualify for an enhanced annuity -

30 June 2010 – More than three quarters (77%) of British adults aged 55 and over are unaware that certain medical conditions could entitle them to a higher level of pension income though their annuity provider, according to new research(1) from MGM Advantage.

The findings show that millions of people are potentially missing out on a higher income in their retirement because they’re not taking advantage of the higher rates that come with enhanced annuities if they suffer from certain medical conditions. Worryingly, according to the survey, 59% of people aged 55 and over claim they have or have had a medical condition that could qualify them for an enhanced annuity.

However, only one in four people (20% of women and 26% of men) are aware that they could get more income when they retire if they suffer from certain medical conditions.

Four fifths (80%) of British adults over the age of 55 claim to have had a health check within the past year and 65% claim to have had one within the past six months but it seems people are not sharing their results with their annuity providers. For example, 40% and 30% of people surveyed have or have had high blood pressure or high cholesterol respectively, which requires treatment or management by a medical professional, and would be considered for a higher level of income by an annuity provider.

The retirement income specialist warns that people who don’t mention any underlying health issues could risk losing out financially as enhanced annuities pay out on average 24.09% more for men and 22.69% more for women. For the first five years of retirement for example, the difference between the amount paid out by an average standard and enhanced annuity is £3,823.50 for a man buying an annuity with £50,000, and £3,407.65 for a woman.2

Health condition that will be considered for an enhanced annuity	Percentage of people aged 55 and over who have suffered this medical condition, requiring treatment and/or management by a medical professional
High blood pressure	40%
High cholesterol	30%
Heart diseases (mostly angina and atrial fibrillation)	13%
Diabetes	11%
Stroke	7%
Heart attack	7%
Chronic obstructive pulmonary disease (COPD)	6%
Breast cancer	4%
Prostate cancer	3%

Source: MGM Advantage, June 2010

Aston Goodey, Sales and Marketing Director, MGM Advantage comments, “Whilst it’s encouraging that so many people aged 55 and over are having regular health checks, it’s shocking that so few are aware that certain medical conditions would qualify them for an enhanced annuity and therefore increased retirement income. In some cases, declaring a ‘medical impairment’ could result in an individual being thousands of pounds better off and make a real difference to their quality of life.”

Goodey continues, “Having a health check before purchasing an annuity is vital, and if someone discovers they have a medical condition, it’s really in their best interest to inform their prospective annuity provider. To ensure you are getting the best annuity rate possible, you should also exercise the Open Market Option and shop around for the best enhanced annuity rate.”

According to MGM Advantage an estimated five million people aged 55 and over are likely to retire in the next five years. Many of these people could be missing out on higher annuity rates unless they get a health check before applying for an annuity.

- Ends -

Notes to editors
1 ICM interviewed a random sample of 419 adults aged 55+ by telephone between 11th – 13th June 2010. Surveys were conducted across the country and the results have been weighted to the profile of all adults. ICM is a member of the British Polling Council and abides by its rules. Further information at www.icmresearch.co.uk

2 Figures from MGM Advantage Annuity Index, June 2010

For further information
Citigate Dewe Rogerson
Alistair Kellie                            020 7282 2850
Jo Skinner                               020 7282 1092
Sophie Woodcock                  020 7282 1072

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 has recently launched a new and unique asset backed annuity - the Flexible Income Annuity, which will give customers the potential to receive a greater income than through a fixed level conventional annuity. The new product includes the flexibility to change income levels at different stages of retirement and the potential for growth and therefore the potential to negate the impact of inflation. It also provides a minimum income guarantee and death benefits.

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.