How do annuities work?
At retirement, most people with a private pension use some or all their fund to buy an annuity. A one-off payment is made in return for a regular retirement income which is guaranteed to be paid to you for the rest of your life. There are also additional options you can choose such as Guaranteed Period, Dependant’s Benefit, Escalation, Retail Price Index (RPI) and Value Protection (only available with pension annuity).
What is an enhanced annuity?
An enhanced, or impaired, annuity will pay a higher income to people with health problems and/or where their lifestyle (e.g. smoking) is likely to reduce their life expectancy. The amount of income will depend on the person’s individual circumstances.
Who is eligible for an enhanced annuity and what conditions are covered?
Partnership is able to consider a wide range of common medical and lifestyle conditions including high blood pressure, high cholesterol, smoking, obesity, diabetes, alcohol abuse/dependency, heart disease, stroke, cancer, multiple sclerosis, Parkinson’s disease and more. People suffering from one or more of these conditions may be eligible for a higher retirement income.
How much extra income could I receive?
The amount of income you could receive from an enhanced annuity will depend on your own individual circumstances. We consider every aspect of our clients’ health so we aim to deliver the maximum benefit we can.
How long will my retirement income last?
Your retirement income will be regularly paid to you for the rest of your life.
What is the Open Market Option (OMO)?
When you retire, the Open Market Option gives you the right to take your pension fund and invest it with another provider who may provide you with a higher income.
How do I apply?
If you think you might qualify for an enhanced annuity you should speak to your Financial Adviser in the first instance. Even if you have never taken financial advice, Partnership believes is critical to do so, especially at retirement, in order to make sure you make the most of your pension savings.
You can get guidance from Partnership on
how to find an adviser, or find a local independent financial adviser at
www.unbiased.com