A new survey has found that snoring may actually help to increase the income available from an Annuity.
Whilst it is becoming more well known that would-be retirees, who suffer from ill health, may qualify for an Enhanced Annuity, and therefore get a better income in retirement, many people don’t know that relatively minor, or indeed obscure conditions will qualify.
Enhanced Annuities
The research by MGM Advantage, a leading provider of Enhanced Annuities, has found that Sleep Apnoea (OSA) sufferers, of which snoring is a symptom, may well qualify for an Enhanced Annuity.
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According to the research, an amazing 60% of people over the age of 65, equivalent to six million people, suffer from the condition. Furthermore MGM have calculated that a male aged 65, with a £100,000 fund, could get £12,000 extra income during their lifetime, just from suffering from OSA.
Declaring medical conditions
Whilst good news for the UK’s snorers, the research also highlights the importance of would-be retirees disclosing all their medical conditions, no matter how insignificant they believe them to be, to their Independent Financial Adviser (IFA) or Annuity provider.
Andrew Tully, Pensions Technical Director, MGM Advantage said: “If you are a snorer, you’re highly unlikely to tell many people but, when thinking about your retirement and purchasing your annuity, it’s something to make very clear. Sharing that little bit of information could mean a difference of thousands of pounds of extra retirement income.”
Once an Annuity has started it can never be changed, it’s therefore crucial that all conditions are disclosed during the application process so that the best possible Annuity rate can be obtained. It is also vital that each application is considered on an individual basis and that is where an IFA can come into their own.
Whilst an online pension Annuity calculator can give you an indication of the non-enhanced rates only by having your application individually underwritten by the Annuity providers will you get your health or lifestyle issues taken into account. A good IFA will collate all your health information and submit it to every
Annuity provider, working hard to get the best rate and in some cases negotiating with the providers to increase the rate they offer.
Falling Annuity rates
As Annuity rates continue to fall, by 7% over the past three months and 20% over the last two years, according to MGM Advantage, retirees need to do everything possible, including declaring all medical conditions, to get the best rate.
Andrew Tully again: “Enhanced annuities take into consideration a wide range of medical and lifestyle conditions. Unusual conditions with subtle symptoms like snoring are eligible, as are far more common conditions like high blood pressure or high cholesterol. It really does pay to make your adviser or pension provider aware of any medical or lifestyle condition you may have. The difference between the worst conventional annuity rate and best enhanced annuity rate can be as much as 48%, which could make a huge difference to your retirement finances.”
Our team of Independent Financial Advisers are experienced in developing retirement income strategies for clients the length and breadth of the UK. We also specialise in Enhanced Annuities, working hard to make sure you get the best income possible.
If you are approaching retirement and would like advice on your options call one of our IFAs today on 0115 933 8433, alternatively enquire online or email info@investmentsense.co.uk
