Research among Partnership’s customers who receive extra money from enhanced annuities for health and lifestyle conditions show:
61% spent extra money on higher food bills
57% on heating and electricity
Those not dependent on extra money for essentials can afford small luxuries:
41% for travelling
37% eating outHigher costs of food and utilities mean it is vital for pensioners to shop around for the best retirement income. Research by annuity specialist, Partnership, among its customers, demonstrated that a significant proportion spent the extra money they had received from their enhanced annuity on higher food bills (61%), heating and electricity (57%), and on meeting the costs of higher council tax and other bills (53%).
Partnership’s customers were only able to meet these additional costs because they had shopped around and purchased an enhanced annuity, which can improve financial circumstances by up to 40%, to reflect their health or lifestyle conditions.
For the majority the extra income is an absolutely necessity however even those who are not dependent on the extra money for essentials can also benefit from shopping around for the best annuity rate, with 41% using the extra money for travelling, 37% for eating out, 36% for treating family members, 30% on days out, 27% on home improvements and 25% on the garden.
Andrew Megson, managing director of retirement at Partnership, said: “Pensioner poverty is a real issue as our customer engagement research highlights. These pensioners receive, on average, over 25% of their retirement income from Partnership and, sadly, many are still suffering hardship. Although current pensioners have limited options, those that have yet to retire should consider, where possible, boosting their pension pot. Critically, anyone with any health-related condition should look into whether an enhanced annuity could improve their retirement income, as we currently estimate than around half of people could benefit from taking one out, yet only a meagre 14% actually do.”
Press Enquiries:
Nigel Barlow, director of product development marketing, Partnership
0845 108 7240
Nigel.Barlow@partnership.co.uk
Jim Boyd, director of corporate affairs, Partnership
0797 345 8675 / 0845 108 7240
jim.boyd@partnership.co.uk
Vaughan Andrewartha, director, Votive Communications
0797 005 6920 / 020 7353 9277
Vaughan@votive.co.uk
About Partnership
Partnership is a specialist provider of financial solutions for people with health/ lifestyle conditions, as well as those suffering from a serious medical impairment. Partnership was the first company in the UK to offer higher retirement incomes by taking account of people’s health and lifestyle conditions. It has been a consistent innovator developing this sector by championing the needs of those with even modestly reduced life expectancies.
Partnership has led the way in providing products designed specifically for individuals whose health and lifestyle is likely to result in a reduced life expectancy. Partnership is expert in the field of medical underwriting and has a unique in-house data set. Partnership believes that its years of accumulated data and knowledge gives it a unique understanding of the impact of health and lifestyle choices on longevity. This, in turn, enables it to offer the most accurate assessment of a client’s life expectancy and therefore offer the fairest price to them.
Partnership has a comprehensive offering in the retirement sector and offers a complete range of Enhanced Annuity solutions, from clients who smoke or have minor health impairments, through to serious conditions such as cancer. Partnership is the largest provider of annuities for Long Term Care funding in the UK, with 80% of the market. It entered the equity release market this year with an Enhanced Lifetime Mortgage and also offers specialist Protection solutions for clients who have been declined cover from standard providers. Partnership offers a firm commitment to supporting advisers in growing their business.
Partnership has won many awards in addition to heading the Sunday Times HSBC Top Track 250 for leading UK private mid-market companies 2011. These include:
• "Best Enhanced Annuity Provider" - Moneyfacts Awards 2010 & 2011
• 'Long-term Care Provider' award at the Health Insurance Awards 2009, 2010, 2011
• Best Annuity Provider - Professional Adviser Awards 2011
• Simply Biz ‘Annuity Provider of the Year’ Award 2010
• ‘eee-rating’ (the highest possible) for its web-based enhanced annuity platform in the e-Excellence Awards 2010.
• 5 Star rating at the prestigious Financial Adviser Service Awards 2010, 2011