Retirees with poor health urged to shop around for the right pension product

10th November 2014

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With World Diabetes Day being marked this Friday, 14 November, pension specialist MGM Advantage is urging those with health conditions who are approaching retirement to ensure they pick a product which best suits their needs.

Notably 10% of people retiring each year have diabetes and an analysis from the MGM indicated that a 65 year old who has Type 2 diabetes could increase their income by opting for an enhanced as opposed to standard annuity.

Andrew Tully, pensions technical director at MGM Advantage, commented: “Living with diabetes is difficult enough, without losing out on income in retirement. Unfortunately, we know that the majority of people who retire each year do not shop around for the best product to provide their retirement income. By doing their research and getting professional advice, those living with diabetes could increase their retirement income substantially.”

MGM Advantage has released a list of the 10 main conditions for which it provided enhanced annuities in October 2014. While high blood pressure topped the list, Type 2 diabetes was fourth highest and conditions such as asthma and depression were also in the top 10.

Conditions for which MGM Advantage provided enhanced annuities, Oct 2014:

1 High blood pressure
2 Smoking
3 High cholesterol
4 Type 2 diabetes
5 Asthma
6 Angina
7 Mini stroke
8 Atrial Fibrillation
9 Chronic Obstructive Airways Pulmonary Disease
10 Depression

Tully added: “Many commentators have predicted the early demise of the annuity. However, for many people, the prospect of a secure, guaranteed lifetime income continues to remain attractive. So we should encourage anyone looking for an annuity to consider the right shape and type of annuity, and then secure the best rate. Unfortunately, far too many retirees are unaware of the significant boost in retirement income they can receive by disclosing health conditions and shopping around for the best deal.”

 

 

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