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

Former_MSE_Guy

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 ..."

Read the full story:
How ill-health can boost retirement income with enhanced annuity

dmg24

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!

Former_MSE_Guy

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

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).

bendix

Why not go the whole hog, and invite BAT to sponsor this particular page, Guy.

That way, eveyone wins. . . .

Chomeur

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

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

expat_mike

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

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

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

Your scheme booklet may have details on ill-health retirement.