While I hope this website gives you a flavour of our approach to financial planning, our main commitment is to provide quality person-to-person financial advice, where myself and the rest of the team look forward to hearing from you soon..."
Managing Director
Contact us
Advice on Enhanced Annuities
Pam and Colin approached us to help them with their retirement planning. Pam was aged 60 and was in receipt of a teachers pension. Colin, aged 62, had been self-employed for most of his life and had accumulated several personal pensions with different insurance companies, and was also a smoker with a couple of recent health scares.
Now that Colin had retired completely from his business he wanted to generate an income from his pension funds. Both Pam and Colin were overwhelmed by the huge choice facing them and sought our advice.
Colin had received quotations from the existing insurance companies who administered his pension arrangements. The quotations were based on the insurance companies own annuity rates and did not take into account that he was a smoker nor did they take account of his health situation.
We explained that he did not have to take up the annuities with the existing insurers and could shop around the market place and choose an insurer who may offer a higher annuity rate. It may also be the case that Colin would qualify for an ‘enhanced annuity’ – a special kind of annuity which takes account of an individuals health position and whether they are a smoker. For those who qualify, enhanced annuities offer a higher level of income than a standard annuity.
After discussing the client’s requirements and identifying the most suitable annuity options, we carried out some initial research and obtained a quotation from an enhanced annuity provider willing to offer 30% more than the existing insurance companies had quoted.
Naturally, Colin was glad he hadn’t sent back the forms to the existing insurance companies to set up his pension because they may have set up an annuity on an entirely inappropriate basis which was not suitable for him and also not taken account of his health situation and therefore whether he would qualify for an enhanced annuity.
If you are considering taking the benefits from your pension fund and are wandering whether you may qualify for an enhanced annuity speak to one of our consultants today.
Contact us now to speak further about this service
The contents of this website should be regarded only as a guide and no action should be taken before obtaining detailed professional advice. No responsibility can be accepted for any action taken as a result of the information contained.