Retirement is not the same as it used to be and for many people, it’s not about getting the gold watch and settling into their pipe and slippers for the rest of their life.
In the 21st century it is the start of a new and exciting chapter, and adequately financing the lifestyle you want to lead is crucial.
It’s important to remember that you don’t have to buy your annuity from the same company you’ve saved with.
You can buy it from another company if you want to and you are highly likely to get a better offer, so it’s important to shop around before you buy.
When it comes to buying your annuity, what your pension company is unlikely to tell you is that being a smoker or having a health condition (even a really minor one) will secure you more money for your retirement.
Your existing pension company will not automatically offer you an enhanced rate so it’s always worth checking.
You don’t have to be really ill, many providers cover a very wide range of health conditions, from high cholesterol and high blood pressure through to more serious illnesses such as cancer.
These enhanced annuities work in the same way as conventional annuities but are designed to offer a better rate for people who suffer from certain medical conditions or have a poor health history.
The increase in income can be up to 20 per cent higher than you’d get from a conventional annuity so it is definitely worth investigating this type of annuity to see if you qualify for enhanced rates.
If you would like more information on this subject, please do not hesitate to get in touch.