Linda Wood looks at why Enhanced Annuities should always be given a second look


Linda WoodMost of us know that buying an Annuity is a one way street; once you have made the decision there is no going back.

Missing out on a higher income because you didn’t check whether you qualified for an Enhanced Annuity or not can be a costly mistake. This was highlighted to me in some work I have recently undertaken for a client.

The client in question came to us right at the last minute; he had even submitted an Annuity application himself directly to an Annuity provider. I’m not sure what made him double check that whether he qualified for an Enhanced Annuity but it was a good job that he did. We took a few minutes to complete some basic medical questions and within 24 hours we had found an alternative Annuity for him giving an extra £200 a year.

The client was extremely happy that he now had a higher income, and as you would expect we made the paperwork as simple as possible for him. Annuity Calculator

Now, £200 a year might not sound like a huge amount of money and to some it isn’t but remember that’s each and every year, in these times of relatively high inflation and low interest rates every penny counts.

It is also worth me pointing out that the pension fund in question was only about £20,000, just think what the difference would be with a larger fund.

An Enhanced Annuity takes into account your health and certain factors relating to your lifestyle, for example smoking status. Simply put it works in the opposite way to life insurance, the worse your state of health or lifestyle, the higher the income you can expect to receive.

But not everyone checks to see if they qualify for an Enhanced Annuity, don’t make the same mistake.

Even if you suffer from the slightest of ailment, which causes you no day to day issues tell us about it. It might be enough to get you a little extra income each year. If you don’t qualify you have lost nothing.

If you would like to find out whether you qualify for an Enhanced Annuity then get in touch with me today, you can call me on 0115 933 8433 or email me