MSE News: How ill-health can boost retirement income with enhanced annuity

This is the discussion thread for the following MSE News Story:

"Savers who buy an annuity have been urged to declare medical problems or risk losing tens of thousands of pounds ..."
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Comments

  • dmg24
    dmg24 Posts: 33,925 Forumite
    Whilst your article refers in part to smokers, the title focuses on ill health. As such, a picture of a cigarette is in pretty poor taste!
    Gone ... or have I?
  • Former_MSE_Guy
    Former_MSE_Guy Posts: 1,650 Forumite
    I've been Money Tipped! Newshound! Chutzpah Haggler
    I think most people would agree that smoking leads to ill-health. And like you say, smoking is a key part of the article.

    dmg24 wrote: »
    Whilst your article refers in part to smokers, the title focuses on ill health. As such, a picture of a cigarette is in pretty poor taste!
  • dunstonh
    dunstonh Posts: 116,320 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    Figures from retirement specialist Annuity Direct show only 20% of its clients who buy an annuity online or via a salesman who does not give advice disclose a medical condition.

    This compares to 44% who declare a problem when they buy from an adviser who is allowed to offer advice.

    Those figures are generally consistent from most IFAs and annuity providers. So, its not just their figures that support this.

    Using an IFA is a no brainer when it comes to annuity purchase. Many think you need to be quite ill but as little as two long term prescribed medications can be enough (high blood pressure and cholesterol being quite common examples). The IFA will either be able to beat what you have been offered or if not (e.g. if you have guaranteed annuity rates on an older pension) then the IFA will be able to sort the paperwork on those and in most cases still be paid by the old pension provider for doing the work (rather then the pension company keeping the money had you done the work yourselves or in some cases, pay the original pension agent from decades earlier).
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • bendix
    bendix Posts: 5,499 Forumite
    Why not go the whole hog, and invite BAT to sponsor this particular page, Guy.

    That way, eveyone wins. . . .
  • Chomeur
    Chomeur Posts: 2,128 Forumite
    First Anniversary First Post
    What if you start smoking a week before you buy your annuity? Would that get you a better deal? Or do they want to know how long you've smoked for?
  • dunstonh
    dunstonh Posts: 116,320 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    What if you start smoking a week before you buy your annuity? Would that get you a better deal?

    No. Timescale of smoking is covered in the declaration. Insurers have tests which can check
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • expat_mike
    expat_mike Posts: 50 Forumite
    Beware -

    Living in Spain I tried to obtain an impaired annuity/pension on my small UK pension pot but to no avail. UK insurance companies will NOT accept a medical diagnosis from a Spanish health centre.
  • Velcro_Hotdog
    Velcro_Hotdog Posts: 1,018 Forumite
    expat_mike wrote: »
    Beware -

    Living in Spain I tried to obtain an impaired annuity/pension on my small UK pension pot but to no avail. UK insurance companies will NOT accept a medical diagnosis from a Spanish health centre.


    That's not true, UK annuity providers WILL accept medical information and diagnosis reports form most EU countries. Spain being one of them.
  • Wolvestilidie
    Wolvestilidie Posts: 1 Newbie
    edited 14 November 2012 at 9:41PM
    Hi,

    I'm after some help with this article if possible as I don't fully understand it.

    Could anybody tell me if I would be entitled to an enhanced pension due to a medical condition in a private company final salaried pension scheme?

    If so, are there rough percentage figures that are applied?

    Any info would be appreciated.

    Thanks for your help in advance
  • xylophone
    xylophone Posts: 44,349 Forumite
    Name Dropper First Anniversary First Post
    Your scheme booklet may have details on ill-health retirement.
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