One of the UK’s leading enhanced annuity providers found that if you used house price as an indicator of wealth, those in more expensive areas typically received less from their pension pot than those in more modestly priced districts.
Standard or conventional annuities are often priced by postcode, as people living in more affluent areas are expected to be healthier and live longer and therefore get lower annuity rates. However, it does not take into account medical conditions. Some of the UK’s estimated 3.7 million diabetics living in a more affluent area could find that they receive up to 19% less from their pension pot.
With diabetes the most under reported medical condition according to Partnership’s actuaries, even those living in less affluent areas would find that they could gain an increase of 9% by speaking to their annuity provider.
Andrew Megson, Managing Director of Retirement, Partnership comments:
“Whether you living in an expensive area or a more modest one, you want to make sure that you get the best possible income from your pension pot. One simple way to do this is to ensure that you declare all your medical conditions and speak to a variety of providers to get the best possible retirement income.
“Over 3.7 million people are living with diabetes in the UK and just by telling your annuity provider about this condition, people can get up to 19% more annual retirement income. It is vital that when people start to prepare for retirement, they not speak to a variety of annuity providers but also take into account any medical or lifestyle conditions that they may have.”
