In the UK, an estimated 60 percent of those who have retired are eligible for enhanced annuity. However, there are only about 18 percent who actually apply and purchase enhanced annuity. The rest of the 32 percent simply did not bother or were not aware that they could qualify for something like enhanced annuity that could increase their retirement income by up to 40 percent.
An increase in 40 percent income is something that cannot be ignored and yet a large number of people do not apply for enhanced annuities. According to a study, it has been revealed that there are approximately 5000 medical conditions that can make an individual eligible for enhanced rates.
In the UK, smokers get up to 15 percent more income than those having a standard annuity. But, they can only increase their retirement income by this much if they shop around for the best deal. According to some leading annuity providers, it is not possible for an individual to find out that he can qualify for enhanced rates until he shops around and seeks advice from independent financial advisor.
There are a number of medical conditions which can be combined to give the best annuity rates. For example, if you are a smoker as well as obese, you will be eligible to get higher annuity rates. If you are a smoker alone, you can get up to 15 percent extra. However, if you combine obesity with being a smoker, you may be able to increase your retirement income by up to 20 percent.
There are a large number of retirees who fail to shop around for the best annuity products and it is mainly because unlike house and car insurance which are renewable every year, annuity products can only be purchased once in a lifetime. For this reason, it is important that you make the right choice because you definitely cannot afford to waste your lifetime’s savings. Retirees start living off their savings in order to take care of their expenditures.
But, there are some people who do not get enough from their savings and this makes sustaining their previous lifestyle difficult. These days, with so many annuity providers available, one should not lose hope as they can purchase annuities to be able to complement their pension scheme. For some people, their pension saving is so small that they need to make lifestyle changes so that their saving is enough for their expenses.
In such cases, people should try to find out if they are eligible for enhanced annuity rates. Enhanced annuities will ensure that a person receives a higher annuity rate and is also able to live the rest of his life comfortably. But, before choosing any scheme, it is also important to look for the best providers who offer the best deals and find out more about the options you have available.
Remember, getting reliable enhanced annuity rates can change the way you would spend your retirement years. Get to know more about enhanced annuities when you click here.