By Press Room
- 40% of the over 55s have suffered or currently have high blood pressure
- 33% of the over 55s have or have had high cholesterol with a further 12% requiring treatment for diabetes
- All of these conditions could qualify for a better retirement income through an enhanced annuity, with as many as 70% of retirees potentially qualifying
- A smoker with high blood pressure would receive £1,000 extra income every year by choosing an enhanced annuity
According to MGM Advantage, the retirement income specialist, 60%¹ of people aged 55 and over have received medical treatment for conditions which would qualify them for an enhanced annuity, and yet 72% said they were unaware that certain lifestyle or medical conditions could qualify them for a better retirement income.
Andrew Tully, Pensions Technical Director, MGM Advantage said:
With such a high proportion of our retirement nation experiencing medical problems, it is of deep concern that many people remain unaware of enhanced annuities. Despite as many as 70% of retirees potentially qualifying, recent industry data² showed that only 2% bought an enhanced annuity in the non-advised market in 2011, which is shocking. When you look at the difference in rates, a man, aged 65 with average impairment could receive an extra £8,684 income for the first five years of retirement simply by making the right choice. Which is why, as an industry, we need to work hard to ensure people are made aware of all of their options.
Over 60% of the over 55s admitted to some form of illness (such as high blood pressure and high cholesterol), which may qualify for a better income, according to MGM’s Retirement Nation report.
The following table highlights medical conditions experienced by the over 55s, all of which could qualify for a better annuity rate through an enhanced quote.
For further details on the Retirement Nation report read more here
Enhanced annuities factor in medical and lifestyle conditions when calculating the rate of income available and the difference between standard and enhanced rates can be significant. For example³, a healthy man, aged 65, with a £100,000 pension fund could receive £6,106 a year income. If this man was a smoker with high blood pressure, the annual income would increase to £7,115. If the same man had diabetes with high blood pressure and high cholesterol, the annual income would increase to £7,843.
Customers looking for further information on enhanced annuities can call MGM Advantage on 0800 032 8975.
For further information:
Paul Keeble: 07833 085387 email@example.com
Notes to editors:
¹Research conducted by Research Plus with 2086 UK adults aged 55+, published in December 2011.
²Source: ABI Market data for 2011. In the advised market, enhanced annuities accounted for nearly 41% of sales by premium. This compares to 2% in the non-advised market.
³Source: MGM Advantage, based on a male, 65 yrs, £100k fund, single life, monthly in advance, nil guarantee & level – correct as at Jan 2012.