Impaired Life Annuity rates

Moonwolf

I mentioned this question in the middle of another thread by me but I'll re-ask here.

In summary. If I think I am going to live a long time but have a condition that might give me an better annuity rate is there an easy way to get an idea of that improvement might be without initially handing over all my details?

I have three DB pots and a DC pot. The DB pots plus state pension should be enough to provide the basics and mean I'll never run out of money so I was going to draw down the DC pot for all the extras.

However I have just had bowel cancer, fortunately although it was malignant and I needed major surgery it had not spread and I didn't need chemotherapy. I'm also looking at redundancy at the moment and my only life insurance is through my employer, I have just discovered that getting decent life insurance is now more difficult.

However, I assume the life insurers use the same actuarial tables as the annuity guys. I still expect to live until my mid to late 80s but I think the tables might give me a lot less life expectancy. Could I leverage this to get a better deal with some of my DC pot than drawdown, at my own risk I have over-estimatd my life expectancy? Does anyone know of any calculators out there that give ballpark figures without signing you up to a lifetime of cold calls? My partner is 15 years older than me and while we would probably go for 50% survivor pension it shouldn't have a terrible impact.

wjr4

Why do you want an annuity over drawdown other than for a possibly improved annuity rate? How old are you and what is the fund value? It is not usually improved by too much.

dunstonh

Does anyone know of any calculators out there that give ballpark figures without signing you up to a lifetime of cold calls?

Cold calling on pensions is not allowed.

My partner is 15 years older than me and while we would probably go for 50% survivor pension it shouldn't have a terrible impact.

You may well find that 100% spouse makes very little difference

I would estimate an additional 0.5% to 1% to the rate but without provision of details, you are not going to get anything better than an dirty estimate. Things like how long you have been clear have an impact as well as haggling. Haggling often brings the greater increase. These things are quite individual on underwriting though and really hard to ballpark.

Moonwolf

I'm not sure I do want an annuity but I might do if I get a decent guaranteed income for life. I'm only 54 but currently replanning as my life is upside down at the moment.

For me the benefits of annuity are just guaranteed income that will never run out, security.

Drawdown is obviously more flexible and if I did die young the family would get the pot, but apart from my partner I have no dependants and the wider family will do OK from other relatives.

The DB plus state pension add up to about £23K and the pot is £240K but at the moment I might have to use a chunk to bridge from a potential upcoming redundancy to my pensions paying out.

Assuming I don't need the bridge, A lump sump of £60K plus a 4% drawdown of the remainder of £7.2K per year seems OK. £30K a year plus £60 savings is about what I was aiming for. If I could get a better annuity at 65 than £8K with the £180,000 left after the lump sum (including 2% growth pa plus 50% spouse) I might take it.