Annuities provide vital funds to fully enjoy life after retirement; so getting the best possible deal for your personal circumstance is imperative when choosing your annuity plan.
Enhanced annuities – also known as impaired annuities – provide a higher income rate for those with shorter life expectancy due to ill health or even lifestyle choices.
The amount of money you will be eligible for is dependent on a number of factors, including the state of your physical health and lifestyle.
Many people are missing out on the greater rates provided by enhanced annuities simply because they are not aware of them. If you are suffering from an ailment of any kind, you should get in touch with one our specialist consultants to determine whether or not you are eligible for an enhanced annuity.
The rates offered by enhanced annuities are typically up to 60 percent more than regular annuities. This rate can differ depending on your own personal circumstances and lifestyle choices.
Am I Eligible For An Enhanced Annuity?
Each individual case is different, but some disabilities and diseases are more likely to get a higher enhanced annuity rate than others. The more serious the disease or condition, the higher annuity rate you will be eligible for.
Some examples of the conditions which can lead to enhanced annuities being available are:
- Heart disease
- Respiratory problems
These are just a choice selection of the conditions which can lead to high rate enhanced annuities.
Even lifestyle choices such as smoking or drinking alcohol can lead to an enhanced annuity rate, making it worth your while to explore all available options.
Your medical details will have to be authenticated in order to successfully apply for an enhanced annuity, but there is no in-person medical examination. Although your medical details will be required for the application, our application process was designed not to inconvenience you in any way.
Enhanced Annuities Explained
Annuities are mandatory for all United Kingdom residents due to government guidelines, meaning you must turn you pension fund into an annuity upon reaching retirement age. You can, however, remove up to 25 percent of your pension fund before purchasing your annuity. This one-time, tax-free amount is known as the Pension Commencement Lump Sum and can provide a handsome monetary boost to support your future long and short-term plans.
Enhanced annuities are still taxable, but the higher rates ensures that a larger amount will find its way into your pockets.