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  • FIRST POST
    • MSE Guy
    • By MSE Guy 16th May 11, 2:52 PM
    • 1,628Posts
    • 1,255Thanks
    MSE Guy
    MSE News: How ill-health can boost retirement income with enhanced annuity
    • #1
    • 16th May 11, 2:52 PM
    MSE News: How ill-health can boost retirement income with enhanced annuity 16th May 11 at 2:52 PM
    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 ..."

Page 1
  • dmg24
    • #2
    • 16th May 11, 3:04 PM
    • #2
    • 16th May 11, 3:04 PM
    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!
    • MSE Guy
    • By MSE Guy 16th May 11, 3:13 PM
    • 1,628 Posts
    • 1,255 Thanks
    MSE Guy
    • #3
    • 16th May 11, 3:13 PM
    • #3
    • 16th May 11, 3:13 PM
    I think most people would agree that smoking leads to ill-health. And like you say, smoking is a key part of the article.


    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!
    Originally posted by dmg24
    • dunstonh
    • By dunstonh 16th May 11, 3:18 PM
    • 98,283 Posts
    • 66,523 Thanks
    dunstonh
    • #4
    • 16th May 11, 3:18 PM
    • #4
    • 16th May 11, 3:18 PM
    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). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • bendix
    • #5
    • 16th May 11, 3:19 PM
    • #5
    • 16th May 11, 3:19 PM
    Why not go the whole hog, and invite BAT to sponsor this particular page, Guy.

    That way, eveyone wins. . . .
    • Chomeur
    • By Chomeur 16th May 11, 7:55 PM
    • 1,758 Posts
    • 400 Thanks
    Chomeur
    • #6
    • 16th May 11, 7:55 PM
    • #6
    • 16th May 11, 7:55 PM
    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
    • By dunstonh 16th May 11, 8:07 PM
    • 98,283 Posts
    • 66,523 Thanks
    dunstonh
    • #7
    • 16th May 11, 8:07 PM
    • #7
    • 16th May 11, 8:07 PM
    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). Comments are for discussion purposes only. They are not financial advice. 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
    • #8
    • 18th May 11, 8:03 AM
    Impaired Health Annuities
    • #8
    • 18th May 11, 8:03 AM
    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
    • #9
    • 18th May 11, 12:20 PM
    • #9
    • 18th May 11, 12:20 PM
    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.
    Originally posted by expat_mike

    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
    Last edited by Wolvestilidie; 14-11-2012 at 7:41 PM.
    • xylophone
    • By xylophone 14th Nov 12, 8:00 PM
    • 29,475 Posts
    • 17,946 Thanks
    xylophone
    Your scheme booklet may have details on ill-health retirement.
    • Linton
    • By Linton 15th Nov 12, 7:42 AM
    • 10,627 Posts
    • 10,982 Thanks
    Linton
    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
    Originally posted by Wolvestilidie

    Any special provision in your scheme should be described in the paperwork, or consult your pension department. If you had a seriously impaired life expectancy it may be worthwhile foregoing a final salary pension and buying an enhanced annuity instead. Whether to go down that route would require professional advice and depend very much on the details of your circumstances.
    • Spirit
    • By Spirit 15th Nov 12, 11:51 AM
    • 5,508 Posts
    • 48,202 Thanks
    Spirit
    Some years ago after a cardiac bypass, I was relatively young and having some trouble renewing life insurance and my cover linked to mortgage expired a couple of months after surgery.

    The advisor informed me "you are quite lucky though as it is going to be very good for your pension. You could get an impaired life annuity".

    There was no irony intended on his part.
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