Diabetes, Pensions and Annuities
Pensions are one of the most important retirement products on the market, and most people with diabetes will have some form of pension scheme. An annuity is a financial services product that a pension scheme holder purchases when they retire.
The annuity provides a retirement income paid regularly. This retirement income varies depending on the type of annuity chosen and the features and benefits of the annuity plan.
Why is this relevant for people with diabetes?
Anyone with a medical history that involves diabetes could apply for an enhanced annuity or an impaired annuity, increasing their retirement income. An enhanced or impaired annuity is a guaranteed monthly payment for life, the size of which depends on your pension scheme and age.
People with diabetes should take advantage of an enhanced or impaired annuity as it could significantly increase their retirement income.
A variety of insurance companies offer diabetes annuities. Typically, a diabetes annuity takes into account overall health and provides an income to suit your circumstances.
Enhanced or impaired annuities will potentially provide people with diabetes with a much higher annuity income.
Estimates for the maximum size of this increase are between 30% and 50%. Therefore, every person with diabetes should review the potential to buy an enhanced or impaired annuity with their pension scheme.
Different types of diabetes carry different risks in the eyes of annuity providers.
For instance, they will weight diabetes controlled by diet and exercise below insulin dependent diabetes.
How do I get an enhanced annuity?
When you are retiring, your pension provider should give you a quote for the full value of your pension scheme.
You can then choose to take the open market option and find the most rewarding diabetes annuity on the market.