Ahead of World Diabetes Day, on 14th November, new research has shown that UK diabetics are potentially missing out on thousands of pounds of income during their retirement.
The research by MGM Advantage, has highlighted the plight of diabetics who buy an Annuity without taking into account their illness.
Despite the changes announced by the Government an Annuity will still be a popular option for pensioners who want a guaranteed income in retirement. Those pensioners with health problems, including diabetes, can potentially get a higher Annuity rate by declaring this illness.
1 in 10 people retiring have diabetes and according to MGM, a 65 year old with Type 2 diabetes and a £50,000 pension pot, could increase their annual income by £217 per year if they chose an Enhanced Annuity over a normal Annuity.
Commenting on the figures, Andrew Tully, Pensions Technical Director at MGM Advantage, said: “Living with diabetes is difficult enough, without losing out on income in retirement. Unfortunately, we know that the majority of people who retire each year do not shop around for the best product to provide their retirement income. By doing their research and getting professional advice, those living with diabetes could increase their retirement income substantially.”
Which conditions qualify for an Enhanced Annuity?
MGM Advantage has also published the top 10 conditions which qualified pensioners for an Enhanced Annuity in October 2014.
1. High blood pressure
2. Smoking
3. High cholesterol
4. Type 2 diabetes
5. Asthma
6. Angina
7. Mini stroke
8. Atrial Fibrillation
9. Chronic Obstructive Airways Pulmonary Disease
10. Depression
Andrew Tully again: “Many commentators have predicted the early demise of the Annuity. However, for many people, the prospect of a secure, guaranteed lifetime income continues to remain attractive. So we should encourage anyone looking for an annuity to consider the right shape and type of Annuity, and then secure the best rate. Unfortunately, far too many retirees are unaware of the significant boost in retirement income they can receive by disclosing health conditions and shopping around for the best deal”
“A professional financial adviser will be best placed to provide the advice required to navigate the retirement income maze and ensure not only the right solutions but the best value is obtained by the retiree.” (Source: MGM Advantage)
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