It’s probably right to say that we are seeing more bespoke pension annuity rates, perhaps more individual rates, these days, with so many different factors being taken into consideration. It’s not just about your age, your sex, and the size of your pension fund any more. Even standard annuity rates are more complex now. There’s a wide variation in these rates available from the various providers, and finding the best annuity rates could give your annuity income quite a significant boost. But what’s involved nowadays?
Factors taken into account include your age, gender, pension fund, marital status, where you live, your occupation whilst at work, your health and your lifestyle, the type of annuity, and the options you select. With enhanced annuity rates there are more factors to consider, and they are even more bespoke annuity rates than standard ones. Why? Because in addition to the above information, full details are required of any medical conditions, and details of any medication, in order to come up with the best annuity rates.
Smoker annuity rates could also be considered to be bespoke, and for two main reasons. First, the majority of smokers of retirement age also suffer from ill health, and therefore the above would apply, as these people would actually be eligible for enhanced annuity rates. Secondly, how many cigarettes a person smokes on a daily basis, for example, can affect the annuity rates on offer, so yet another consideration to bear in mind.
You could obtain increased pension annuity rates for the following reasons: you worked in a manual, more risky type of occupation (e.g. a miner); you live in a more deprived area (the Gorbals); you suffer from ill health, severe or mild; you take prescription medication on a regular basis; you’ve been hospitalised for a period due to a medical condition; you smoke; you’re overweight; and there’s more. So, the conclusion is that to find the best annuity rates you should speak with an adviser, and take advice.
Finding the right annuity rates could provide you with a much improved retirement income of 30% (or perhaps even more) higher than the pension annuity rates available from your current pension provider. So you need to be prepared to discuss your individual requirements and circumstances in detail with an adviser, and be prepared to take advice. It could prove to be financially well worth it.
