All Press Releases for December 30, 2012

Buying an Annuity: How an Enhanced Annuity Helps Those with Ill Health

What is an enhanced annuity? The Retirement Centre explains how those with ill health can boost their income with an enhanced annuity; and how everyone can save by using an annuity rates calculator and shopping around for the best deal.

    LEEDS, ENGLAND, December 30, 2012 /24-7PressRelease/ -- According to a recent survey from MGM Assurance, more than 70% of those approaching retirement are missing out on increased annuity payouts because they do not apply for enhanced annuities.

What is an Annuity?

Everyone who is nearing retirement and has either a personal pension or a company money purchase pension scheme will need to purchase a pension annuity when they retire.

Billy Burrows of Better Retirement Group describes an annuity as: "a bet with the insurance company about how long you will live." When buying an annuity, you should therefore shop around to find the best deal (or best "odds") for your personal circumstances and lifestyle.

What is an Enhanced Annuity?

If you have a health condition that may decrease your life expectancy or you are a smoker, you are advised to request an enhanced annuity, which takes into account your shorter life expectancy and therefore offers a higher annuity rate.

Enhanced annuities pay higher incomes for people who smoke, take prescription medication or who have been to hospital recently because of a medical condition. Those who are expected to live longer receive a lower annuity rate (annual pension amount), because the pension is likely to be paid out over a longer period of time. This means that women and those with good health and no pre-existing medical conditions receive lower rates as they are expected to live longer. Women with ill health are therefore advised to declare all their health conditions to ensure they get the best possible rate.

With new EU rules on gender discrimination coming into force this month that mean annuities have already been reduced for the majority of men, those with ill health have even more reason to shop around and ask for enhanced annuities on the grounds of ill health, in order to get the best rate.

Whatever your health or lifestyle, it is always a good idea to thoroughly research the market when buying an annuity to make sure you get the best returns for your pension pot. Customers are advised to use an annuity rates calculator to shop around for the best deals and to seek independent financial advice before committing to any financial products.

More information about annuities, including an annuity rates calculator, visit The Retirement Centre website at:

The Retirement Centre is an independent company, designed to help people aged over 50 to make the right financial decisions and enjoy their retirement. To compare annuity rates and find the best deal for your annuity, visit The Retirement Centre website:

For more information, call Dominic Fraser-Smith on 0113 320 5595 or email

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Contact Information

Dominic Fraser
The Retirement Centre Ltd
Leeds, West Yorkshire
United Kingdom
Voice: 0113 320 5595
E-Mail: Email Us Here
Website: Visit Our Website

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