Information contained in a press release from one of the largest enhanced annuity providers Just Retirement suggests that possibly 55 – 65% of retirees might qualify for enhanced annuities. Enhanced annuities are available to those with lifestyle or medical conditions. It was recently reported that 12% of all annuities sold are now enhanced due to qualifying conditions.
The main issue is that during their lifetime many retirees are not used to declaring lifestyle or medical conditions, the only time you declare these is if you apply for some kind of life or health insurance. According to Just Retirement, there are 1500 conditions that can qualify on their own or in combination.
Nigel Barlow from Just Retirement commented in the press release:
“While the smoker annuity is well known, many may still not be aware of the effect that high alcohol consumption, obesity, high blood pressure and high cholesterol can have on them. It is obviously better from a general perspective to try to be as healthy as possible and to avoid these things altogether. We would recommend that people seek help with any of these factors and are aware of the health issues they can cause. If any of the factors are present at retirement, however, an enhanced annuity takes into account the effects and pays out an increased income to recognise this. Enhancements are available based on the health of the annuitant or their spouse, so an even higher
proportion of joint life cases could qualify.”
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