Enhanced Annuities – A Quick Glance at How They Work
Enhanced annuities are paid to those retirees that have a shorter than average life span.It does not mean you have to be seriously ill to qualify,merely that the annuity provider that offers you the enhanced annuities expects you to live for a shorter period of time that average.
Many retirees do not understand how annuitants work;let alone how enhanced annuitants work. This is borne out by the many statistics that are reported daily in the UK press and media.The main problem is that in the main people only retire once,and when they do,all of a sudden they are faced with the daunting task of converting their pension savings into a sustainable income that will need to last the rest of their life.
Shortly before retirement the majority of future retirees will receive a pack from the pension company they saved with,this pack outlines what you need to do to convert the pension into a sustainable income.It will at some place in the literature mention about enhanced annuities, but the jargon and sheer complexity of how annuities work will confuse the person reading the information.This means that they will not understand that they may qualify for annuity rates that could be as much as sixty percent higher than they might get.
Recently one of the leading enhanced annuity providers issued a press release commenting that there are over 5000 medical conditions that could qualify for enhanced annuities and that in their opinion as many as 60% of those that purchase an annuity could qualify for the higher annuity rates that they give.These are staggering statistics and surely should not be ignored by future retirees.
It does not matter if you have a pension pot of 10,000 pounds or 100,000 pounds if you qualify for enhanced rates you should apply for them.The application process means completing a medical information form and submitting this to each of the providers that offer enhanced annuities.An easy way to achieve this is to seek the help of an independent financial adviser.The adviser will do the work on your behalf and ensure the money changes hands between providers smoothly.