Will the best pension annuity rates be enough for the many millions of people in retirement? Around 14.5 million people expect their income needs to increase through retirement, so no. A quarter of non-retired adults have not started to plan their retirement income just yet, but 20% (6.4 million) non-retired adults will not seek professional financial advice on their retirement needs. New research reveals that 60% of non-retired adults are concerned about the effect that inflation will have on their future income in their retirement, but over six million will not bother to seek professional advice. The survey from retirement specialist MGM Advantage illustrates that concerns over the impact of inflation rises to 70% of non-retired adults aged 45 to 54 and to 78% for those aged 55 to 64 years.

The latest Inflation Report coming out from the Bank of England states that economic conditions remain uncertain in the near future while in January there was the biggest year on year hike in the Consumer Price Index (‘CPI’) since records began. MGM Advantage warns that this is already having a dramatic impact on the income available to those people in retirement and that the situation could get worse unless those nearing retirement take steps to do something about it. Getting the best annuity rates will help a little.

The Government wants to foster a new culture of saving in the UK with compulsory annuity purchase changes. The Treasury secretary, Mark Hoban, has suggested new rules supposedly helping the vast majority of people who buy an annuity at retirement for their income secure the best possible deal? Or has he put an end to the requirement to have to buy an annuity at 75, giving the tiny minority who want to leave their pension fund invested at 75 the ability to do so?

There are merits in both, but the Government aren’t addressing the first option, but the second, aimed at a wealthy minority. Currently the only option at 75 other than buying an annuity is an alternatively secured pension (or ASP), which attracts 82% tax on death. That will now be replaced with a form of capped drawdown, with an annual withdrawal limit, aa well as uncapped drawdown for those with a certain income level. It certainly isn’t pensions simplification. No, we’re going to see more confusion and chaos. The Treasury’s own figures show that just 5,000 people aged between 55 and 75 will be affected by this proposed change, that’s just 1% of retirees, with the average UK pension fund at retirement worth less than £30,000.

Surely the Government should turn its attention to the 99% of retirees not affected by all this, for whom buying an annuity is the only viable option. It’s estimated that less than 40% of retirees actually use the open market option (OMO) to shop around for the best annuity rates at retirement, staying instead with their existing pension provider. For most this means waving goodbye to thousands of pounds of vital income. However, the Government has not yet deemed this massive issue worthy of the scrutiny afforded to the age 75 annuity purchase issue. Realistically, making the OMO the default option at retirement is needed if the pension system is going to work fairly for the vast majority of retirees who still rely on buying an annuity.

You can get higher enhanced annuity rates for ill health, and we’ve plenty of examples on the enhanced annuity rates page. Your medical condition(s) might not be shown, but you are able to get a good idea of the higher annuity rates you might receive. Diabetes, for example, can result in annuity rates up to 30% higher, asthma up to 10%. There are actually over 1,500 medical conditions that can be considered. Examples: Alzheimer’s, angina, arthritis, blood pressure, various cancers, COPD, cholesterol, DVT, heart attack or stroke, heart disease, kidney complaints, leukemia, liver complaints, Parkinson’s, and rheumatism.

You need to be prepared to fully disclose your medical condition(s) to get the best enhanced annuity rates. Have you had a health check recently? Did it reveal anything that might effect the annuity rates you’re offered? The average increase in annuity income from enhanced annuity rates compared to standard annuity rates is around 22%, so don’t miss out. And, annuity rates 50% higher aren’t uncommon for more serious medical problems.

If several factors apply to you, you could be eligible for even higher UK pension annuity rates. Let me explain; first, when you buy an annuity, you’re buying an income for life. So it’s important you shop around to find the best deal, and it’s also important that you disclose anything that might effect the annuity rates you’re offered. As annuity specialists we take into consideration your individual circumstances, but we only know what you tell us. Whether you enjoy good health or suffer from ill health, we’ll find you a better deal.

It’s possible we could get you up to 30% more annuity income than you would receive from your existing pension provider, but only if you tell us all we need to know about your circumstances. You could get up to 20% higher pension annuity rates if you’re fit and healthy, up to 30% higher if you have ill health, up to 30% higher if you’re a regular smoker. You can even get higher annuity rates if you’re overweight or drink alcohol regularly, or if you live in certain postcode areas. However, the point of this article is to inform you that the more of these factors that apply to you, the higher the annuity rates, and the higher your retirement income.

Smoker annuity rates, standard, or enhanced annuity rates; which annuity rates are right for you? When you buy an annuity with your hard earned pension fund, you’re buying a guaranteed income for the rest of your life. So it’s important you shop around properly to find the best deal. You’re better off using annuity specialists like ourselves; we’ll look at your individual circumstances, including your state of health. That’s why we could find you a better deal. Allow us to shop around for you and we’ll find you a better deal and a better annuity income.

You could give your retirement income a tremendous boost. First, though, you need to know that your existing pension company is unlikely to provide you with the best deal. We’ll do better for you, whatever your situation. We can get you standard annuity rates, which will provide extra income if you’re fit and healthy, and non-smoking; enhanced annuity rates, which could get you up to 30% more income if you suffer from ill health; smoker annuity rates, which could get you up to 30% more income if you’re a regular smoker. Then there’s lifestyle issues to consider, which can result in extra income if you’re overweight, or if you drink alcohol regularly. Finally, we have postcode annuities rated on where you live. So there you have it, plenty of ways to achieve a higher annuity income, and no need to miss out.

To achieve the best deal at retirement you need to disclose any details about your health or lifestyle that might effect the pension annuity rates you’re offered. If you fail to do this, you could miss out on the best enhanced annuity rates, for example. Many people are enjoying the benefits of a higher annuity income these days due to the numerous different factors now being taken into consideration. Why don’t you contact us and see how much extra annuity income we can achieve for you.