Blog Personal Financial Don’t miss out on your pension entitlement.
As the baby boomers start to retire new research by Just Retirement shows that more than half of those retiring could qualify for an enhanced, or ‘impaired life’ annuity. However, according to the latest figures only about 10% of annuities are being bought on an enhanced level (or higher rate) because of health problems.
Nigel Barlow, head of Just Retirement’s retirement income solutions says “the 2008 general lifestyle survey suggested that 56% of people between 65 and 74 have a long standing 
illness that should qualify for an enhanced annuity.
At present there are more than 1500 conditions that can count towards an enhancement and, with annuity rates at record lows, it’s definitely worth shopping around to make sure you get the best rate possible for your pension income.
For example, if you are a 65 year old male with a pension fund of £40,000 your annual standard pension could be as low as £2413 per year. This could rise to £2725 per year if we applied something called an open market annuity (where we shop around for the best annuity rate for you).
Add high blood pressure or cholesterol to this and the pension could rise to £2771 per year. Add a stroke within the last 5 years that has caused reduced mobility then this could rise to around £3132 per year, an increase of 30% from the standard annuity.
At Ideal we are able to talk you through the choices available to you at retirement and help you make the most suitable choice. After all, with our longevity figures rising, the decision you make might have to last you another 30 years.
Ideal Financial Management Ltd – it’s not about your money; it’s about your life.
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