Approaching retirement?
• Want to increase your retirement income for the rest of your life?
• Have you examined all your retirement options?
• Do you smoke, have an illness or take prescription medication?
When you retire you can take a tax-free lump sum from the money you have accumulated in your pension fund. The rest of the fund is usually used to buy an annuity which provides an income for the rest of your life.
Significant differences in the income your pension fund can buy exist between various annuity providers so it is worthwhile ‘shopping around’ to find the best deal for you. In addition, if you have certain health conditions or are a smoker, an enhanced annuity could provide you with an even higher income.
Once an annuity is selected you cannot later change your mind and move funds elsewhere – so making the right choice is vital. At IFS we provide expert, independent financial advice to help you get the best retirement income. Please contact me on 0800 3213508 to discuss your retirement options. It could be worth a lot of money to you and your spouse if you do.
These sample case studies demonstrate the type of cases that could typically qualify for an enhancement:
Jane
Jane suffers from Ulcerative Colitis which was diagnosed more than 5 years ago. On first discovery, Linda was hospitalised for a partial bowel resection. Linda now has to take regular medication to control her condition. With enhanced underwriting based on this condition, Jane’s case could qualify for up to a 30% enhancement over a typical annuity rate.
Scenario is based on a female aged 60 with a fund value of £40k. Quoted Single Life, monthly in advance, nil guarantee, level and no Value Protection. Correct as at 26/11/09. Typical OMO rate sourced from The Exchange 26/11/09
Thomas
Thomas was diagnosed with Haemochromatosis (iron overload) over a year ago, and requires special treatment such as blood letting. With enhanced underwriting based on this condition, Thomas’s case could qualify for up to a 22% enhancement over a typical annuity rate.
Scenario is based on a man aged 65 with a fund value of £40k. Quoted Single Life, monthly in advance, nil guarantee, level and no Value Protection. Correct as at 26/11/09. Typical OMO rate sourced from The Exchange 26/11/09
Diane
Diane had broken another bone through a minor fall, as a result of her osteoporosis, a condition which can affect 50% of people over the age of 75 in the UK and for which Diane takes calcium supplements. Anne’s condition and medication mean that she could qualify for an enhancement of at least 8.2% over a typical Open Market Option.
Scenario is based on a woman aged 65 with a fund value of £40k. Quoted Single Life, monthly in advance, no guarantee, level and no Value Protection. Correct as at 04/01/10. Typical OMO rate sourced from The Exchange 04/01/10
Sarah
Sarah has stopped taking sugar in her tea and started taking more exercise since her GP had instructed her to lose weight, (Sarah is one of the 20% of individuals in the UK described as ‘obese’). With an enhanced annuity, Susan could receive an additional 8.2% in retirement income over a typical Open Market Option.
Scenario is based on a woman aged 65 with a fund value of £40k. Quoted Single Life, monthly in advance, no guarantee, level and no Value Protection. Correct as at 04/01/10. Typical OMO rate sourced from The Exchange 04/01/10
Martin
Martin has had a mild form of Asthma since he was a child. But even though Martin’s asthma doesn’t restrict his daily activities and is well managed, he could still qualify for an enhanced annuity of at least 7.4% over the typical Open Market Option.
Scenario is based on a man aged 65 with a fund value of £40k. Quoted Single Life, monthly in advance, no guarantee, level and no Value Protection. Correct as at 04/01/10. Typical OMO rate sourced from The Exchange 04/01/10
Robert
Robert used to smoke 30 cigarettes a day but stopped recently on the advice of his GP – Robert has Claudication, a condition that causes severe leg cramps and limits his mobility to walking less than 100 yards. His condition and history could mean that he could qualify for an enhanced annuity of at least 7.4% over the typical Open Market Option.
Scenario is based on a man aged 65 with a fund value of £40k. Quoted Single Life, monthly in advance, no guarantee, level and no Value Protection. Correct as at 04/01/10. Typical OMO rate sourced from The Exchange 04/01/10
Christopher
Christopher has Rheumatoid Arthritis, and over time has developed painful joints in both his hands. He takes prescribed medicines to reduce the inflammation. Christopher’s condition and treatment mean that he could qualify for an enhanced annuity of between 7.5% and 11% over a typical Open Market Option.
Scenario is based on a man aged 65 with a fund value of £40k. Quoted Single Life, monthly in advance, no guarantee, level and no Value Protection. Correct as at 04/01/10. Typical OMO rate sourced from The Exchange 04/01/10
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William George has been a Financial Advisor since 1993. From Dunfermline, Fife in Scotland, he services clients across UK, as well as expats from as far afield as New Zealand. He also has appeared on BBC Radio Scotland discussing investing and specialises in helping people with Retirement Planning and Pension Advice. Google+
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