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

Frequently asked questions about enhanced and impaired annities, conditions that qualify for impaired and enhanced annuities and how to get a general practitioners report to qualify for enhanced or impaired annuity.

Enhanced pension annuities are

applicable to people with diabetes


or


any of the following medical conditions

: heart disease, cancer, high blood pressure, high cholesterol, asthma, stroke and kidney disease. For a full list, please see the

applicable medical conditions

How much extra will I get from an enhanced or impaired annuity?

Different types and extremes of diabetes carry different risks in the eyes of pension policy makers, and this will influence the enhanced annuity or impaired annuity rates offered.

Risk categories may include insulin dependent diabetes, non-insulin dependent diabetes and diabetes controlled by diet.

The extremity of diabetes type, including diabetes complications, obesity or unhealthy lifestyle such as smoking, will all influence how much extra annuity people with diabetes receive.

My pension company want me to buy a conventional annuity through them, can I get an enhanced annuity because I have diabetes?

When your pension company has given you an illustration of what your retirement income will be, you can choose to take the Open Market Option.

You can seek an enhanced annuity or impaired annuity at this point.

Why is choosing the right annuity important?

Once an annuity is chose, whether you have diabetes or not, it cannot be changed.

It is best to research annuities before retirement, then compare annuity rates, and make a decision at retirement.

I have diabetes complications as well as diabetes, what does this entitle me to in terms of annuities?

If you have diabetes complications caused by your condition, you may be eligible for further enhancements relating to your condition.

An impaired health annuity can provide a far more significant retirement income than a conventional annuity.

What conditions would qualify me for an enhanced or impaired annuity?

The following medical conditions are likely to qualify a pension holder for an enhanced or impaired annuity:

• Regular cigarette smoker
• Diabetes
• Heart Attack
• Chronic Asthma
• Multiple Sclerosis
• Stroke
• High Blood Pressure
• Cancer – lung, breast, bowel, pancreatic, liver
• High Cholesterol
• Overweight
• Digestive or Bowel Complaint
• Bladder or Liver Complaint
• Dementia
• Emphysema
• Secondary malignant cancers
• Chronic heart disease
• Some primary malignant cancers
• Kidney disease with ongoing dialysis
• Chronic Lung Disease
• AIDS
• Stroke with ongoing support needed for normal living
• Multiple Sclerosis, permanent wheelchair support
• Motor Neurone Disease
• Hodgkin’s Disease
• Parkinson’s Disease
• Alzheimer’s Disease

Getting a GP’s report to qualify for an enhanced annuity or impaired annuity

When it comes to buying an enhanced annuity or impaired annuity, the insurance company or pension company will often request a report from a General Practitioner.

The GP will then provide details of the illnesses in order for the company to start payments at an enhanced rate. Generally speaking, the worse the medical conditions the higher the annuity rate offered.

With the current economic climate, many people have started to review their public sector and private pensions to ensure their pension is earning the most it can.

It is now more important than ever to start planning and saving early for your retirement.

Although a state pension is provided by the UK, as people live longer, it will not be able to sustain those who are looking to rely on it.

You may be able to increase your pension income when you decide to draw your benefits from a private pension or employer sponsored pension plan at retirement, because you have diabetes.

I’ve heard people with diabetes can increase their pension with annuities?

Annuities allow you to increase your pension income by drawing your benefits from a private pension or employer pension plan at retirement, because you have diabetes. See our

annuities guide

This is seperate to reviewing your pension which you can do below.

How can I make sure I’m making the most of my pension?

Make a

FREE, no obligation pension enquiry

and speak to a specialist pension advisor about your circumstances.

• Take advantage of a FREE pension review
• Join a huge group of satisfied customers
• Move your pension and pay no hidden charges

Reviewing my company pension

You should review your pension whether it’s your state or private company pension.

Company pensions have started to reduce in size, also. Most companies used to provide generous pensions to their staff back when a typical employee spent most of their career at one firm.

However, with the typical employee now likely to spend their career working for several different companies, many employers have decided to cut back on their pension offerings.