More than three quarters (76 per cent) of people over 55 do not know that medical conditions or lifestyle choices could increase the money they receive from an Annuity.
The Price of Freedom Research has shown that many retirees could be losing out on a higher pension income by not disclosing health issues or lifestyle choices, such as drinking or smoking.
A Survey of 2,000 over 55s also found that 8 per cent believed that ill health would reduce the amount of money they receive in retirement, whilst a further 18 per cent thought it wouldn’t make any difference to how much they get when they retired.
People with health conditions, as well as smokers and drinkers, stand to benefit from better annuity rates – but only if they disclose everything to their financial adviser or annuity company.
A potential cause for concern was that 5 per cent believed that telling an annuity provider about a medical condition would lead them to having their application rejected. Also, a large number of people approaching retirement were unsure of what an annuity was.
It’s important for everyone approaching retirement to consider attending a Pre-Retirement Seminar when all these questions, queries and uncertainties will be explained in full.