What Is An Enhanced Annuity?
You may qualify for an enhanced annuity rate which could mean an increased income in retirement if you or your partner (in the case of a joint life annuity) suffer or have suffered from one or more medical conditions.
Annuity rates are calculated using a number of assumptions which include your life expectancy. If you have any medical conditions or a lifestyle which may reduce your life span these will be taken into account when you are offered an annuity rate. The severity of your illness could provide you with an enhanced annuity rate of as much as 30%.
The increase in income you will receive from an enhanced annuity will depend on what type of conditions you have. You will be asked by the annuity provider to complete a health questionnaire to provide further information about your conditions and they may contact your GP to get a clear understanding of your health before they will offer you the level of income available from an enhanced annuity.
Different providers may treat different medical conditions in different ways so it is critical to seek financial advice and search the market for the best deal. Medical conditions and life style factors that will be taken into account include cancer, diabetes, heart conditions, neurological conditions, obesity, high blood pressure, high cholesterol and smoking.
It is believed that as many as 40% of retirees could qualify for an enhanced annuity rate which will really help to maximise your income in retirement. Enhanced annuity rates could be up to 100% higher that the standard rate so it pays to get advice and shop around.
At Right Retirement we can make sure that you get expert financial advice and find the best annuity rates for your circumstances. Contact us today.