MORE than three quarters of British adults aged 55 and over are unaware that certain medical conditions could entitle them to a higher level of pension income though their annuity provider.
New research from MGM Advantage shows that millions of people are potentially missing out on a higher income in their retirement because they’re not taking advantage of the higher rates that come with enhanced annuities if they suffer from certain medical conditions.
According to the survey, 59% of people aged 55 and over claim they have or have had a medical condition that could qualify them for an enhanced annuity.
But only one in four people (20% of women and 26% of men) are aware that they could get more income when they retire if they suffer from certain medical conditions.
Four fifths of British adults over the age of 55 claim to have had a health check within the past year and 65% claim to have had one within the past six months but it seems people are not sharing their results with their annuity providers.
For example, 40% and 30% of people surveyed have or have had high blood pressure or high cholesterol respectively, which requires treatment or management by a medical professional, and would be considered for a higher level of income by an annuity provider.
The retirement income specialist warns that people who don’t mention any underlying health issues could risk losing out financially as enhanced annuities pay out on average 24.09% more for men and 22.69% more for women.
For the first five years of retirement for example, the difference between the amount paid out by an average standard and enhanced annuity is £3,823.50 for a man buying an annuity with £50,000, and £3,407.65 for a woman.
According to MGM Advantage an estimated five million people aged 55 and over are likely to retire in the next five years. Many of these people could be missing out on higher annuity rates unless they get a health check before applying for an annuity.