Many over-55s could claim enhanced pension payouts

| November 23, 2011
Many over-55s could claim enhanced pension payouts

Many people approaching retirement age don’t realise they could receive higher pension income if they have ongoing health issues, or if their lifestyle could potentially reduce life expectancy.

The risk that over-55s could be missing out on retirement funds was highlighted in a study by MGM Advantage.

Seventy-two percent of this age group could be eligible, according to the study, but many people are unaware that their health can affect their annuities.

People approaching retirement age are advised to have medical checks before retiring and buying an annuity.

Enhanced Annuities may be available for regular smokers, people who are overweight, and those who have worked for a long period in a hazardous occupation, such as mining.

People who suffer from conditions such as high blood pressure, diabetes, heart conditions, kidney failure, certain types of cancer, multiple sclerosis and chronic asthma could qualify for an impaired life annuity.

Enhanced and impaired annuities pay significantly higher rates because people with underlying medical conditions and risky lifestyles have a shorter life expectancy than those who are in good health and therefore the insurance company expects to payout for a shorter period of time.

The Pensions Advisory Service offers an Annuity Planner on its website which is designed to help with the decision-making process for purchasing an annuity.

With 10 per cent of adults concerned they will never be able to retire on their current savings plan according to a recent study, the possibility of being eligible for a higher income could make all the difference.

A poll by the Institute of Financial Planning revealed that just 19 per cent of adults are confident they are saving enough for the future, while 47 per cent said they did not believe they have saved enough to fund a comfortable retirement.

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  1. LYNNE HEAL says:

    I was diagnosed in 2009 2 private pensions am not 50 yet they wont pay out what have paid into and I nearly died last year with complications its ALL WRONG