More people are taking UK enhanced annuity rates, with significant growth in the enhanced annuity market. Aston Goodey, Director, MGM Advantage comments that enhanced annuities have experienced a strong growth in their sales in recent years and it’s not surprising to learn that they now account for almost one in five of all pension annuities sold. He added that the products offer fantastic value, paying out around 22% more annuity income each year compared against standard annuities. Over the course of retirement a man eligible for an enhanced annuity with a £50,000 pension fund will find himself over £12,500 better off.
Goodey continues, stating that the awareness of enhanced annuities is on the up and those approaching retirement increasingly realise that these products are open to people with relatively minor health conditions, perhaps such as high blood pressure. However, too many people still take the first annuity deal offered to them and fail to shop around properly or investigate whether they might be eligible for an enhanced annuity. Once you have converted your pension fund into an annuity there is no going back, which makes this one of the biggest financial decisions you’ll ever make. Anyone on the verge of their retirement needs to consider their options very carefully to ensure they maximise their pension fund, and therefore they should seek professional advice.
