Are we guilty of providing you with too much information about UK pension annuity rates? Are we confusing you with too much detail? I certainly hope not, because the main purpose of this website is to educate those people approaching their retirement that there are some higher annuity rates out there, and that taking advice is the best way to find them. Doing nothing simply ends up costing you too much in terms of lost retirement income. In a way, it’s a case of ‘if you don’t ask, you don’t get’. You can always turn down the advice after all.

Three pointers towards a better annuity income and how we might help you. First, higher annuity rates are available, and it’s very likely you can get a better deal than the one on offer from your existing pension provider. Secondly, you might qualify for higher annuity rates, and it could be really worth your while finding out if you do. We can help you find out if you do. Thirdly, if you do qualify, we can help you find the best ’higher’ annuity rates. Ultimately, that’s what it’s all about, finding the best UK annuity rates, and obtaining more money in your retirement.

Impaired life annuity and enhanced annuity sales continue to rise. UK sales of these types of annuities, which offer higher annuity incomes to people who suffer from ill health and to smokers, those likely to die prematurely, rose around 25% last year in a sign of their increasing popularity among retirees, according to a recent study. Sales of these products, known as impaired life annuities and enhanced annuities, rose to around £1.79 billion ($2.72 billion) last year, according to leading consultants Towers Watson.

These enhanced annuity products now account for about 17% of the UK pension annuity market, Towers Watson said, up from about 7.8% in 2001. 2009 was another record year for these enhanced annuity sales and means more consumers are benefiting from higher annuity incomes, said Towers Watson consultant Andy Sanders. Enhanced annuities were introduced into the UK in 1995, and are offered by companies including Aviva (was Norwich Union), Axa , Canada Life, Legal & General and also Prudential. Annuities offer retired individuals a fixed income for the rest of their lives in return for a lump sum paid on their retirement.

MGM Advantage’ new lifetime income annuity product has been awarded five stars. Richard Eagling, editor at well-respected Moneyfacts, said the annuity product was an “Oscar winning performance” that would take a strong and welcome position in any retirement adviser’s product portfolio. Chris Evans, current chief executive of MGM Advantage, replied that he was really thrilled to receive the award, but added that there is a growing problem in the retirement planning market as increasingly conventional annuities will no longer meet people’s changing retirement needs.

MGM Advantage’s lifetime income annuity product offers 50% - 120% of the income that would be available from a standard, conventional annuity. The Pension Protection Fund (PPF) recently revealed alarming figures which show a £15 billion deficit in the UK’s defined benefit pension arrangements and it is believed that more people will choose other available options, such as equity release plans, to fund their retirement incomes. Whatever you’re thinking of doing, buying a lifetime annuity or otherwise, take advice. It’s well worth it.

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.

Are you eligible for higher UK annuity rates? Because many more people are eligible for higher annuity rates these days owing to the increasing number of factors now taken into account in the calculation of annuity rates, including: ill health, if you smoke, your lifestyle (weight, for example), and where you live. This is leading to more individual underwriting. See our new quick reference guide on the homepage.  

Ill health is one of the key factors for getting higher pension annuity rates, and the more severe the ill health, the higher those annuity rates. To illustrate the higher rates available there are some example quotes on the annuity rates pages of this website. Ill health, along with the other above factors, has an effect on your life expectancy, and, the shorter your life expectancy, the higher the annuity income, because the anticipation is that it will be paid for a shorter period of time.

You could increase your annuity income by up to 30%, or perhaps even more, and that means a higher income every year for the rest of your life. Find out if you might be eligible for higher annuity rates and how much that could mean to you. Don’t be one of the 40% of people at retirement who qualify for higher annuity rates, but don’t even bother to apply. We can help you achieve a better annuity income. Just contact us, and let one of our advisers help you discover just how much extra annuity income you might be eligible for. If you’re not eligible for these higher annuity rates, we’re confident we can obtain better rates than those from your current pension provider.