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Pension annuity rates

Bertyboy

Well-Known Member
Messages
215
Type of diabetes
Type 1
Something that has occurred to me is that if I'm going to have (an average of) 11 years knocked of my life for having diabetes, I should get something in return other than just free prescriptions (which I wouldn't need without the diabetes anyway). This should come in the form of excellent annuity rates, all else being equal.
Are there any folks here who have retired recently and noticed if their annuities are much better than other people?
 

Many more people than realise may be eligible for what is known as an "impaired life annuity". These are carefully underwritten at the time of application, and that takes into account many factors, from your diabetes status and control, any other meds taken, like statins or anti-hypertensives.

When the time comes, you should at least look into it.
 
I will be 65 next April and will get the state pension. I will also still have a full time job as well. I paid off my mortgage a few years ago and now put a large percentage of my salary into my pension. In the UK you can put up to £40,000 per year into a pension. This has allowed me to save up a reasonable amount to supplement my state pension when I do stop working.

I wont be buying an annuity. Instead I will be investing in a Drawdown Pension. This is more like a bank account and has the advantage that my wife can inherit all the money left in the pension after I die. See https://www.moneyadviceservice.org.uk/en/articles/income-drawdown
 
Bertyboy said:
Are there any folks here who have retired recently and noticed if their annuities are much better than other people?
Click to expand...

When my husband took out an annuity for both of us, we got better rates because of my diabetes. You can also get better rates if you smoke, and probably a few other things, too. You need to shop round and ask questions.
 

There are a number of reasons an individual would not consider a Drawdown arrangement, so they're not for everyone.
 
i can only speak of my own experience -- I use a financial adviser and for me he has been fabulous
with my pension plans earned through a few companies( SIPP and drawdown ) I was able to retire early at age 56 with a decent ( not rich ) pension I still have state pension to add to this when I turn 66

it is totally important to seek advice from a totally independant and scrupulous adviser. ( there are some out there )
 
Bertyboy said:
Are there any folks here who have retired recently and noticed if their annuities are much better than other people?
Click to expand...

I wouldn't say much better but I do have and slightly enhanced pension because of being diabetic. I had a pension fund to purchase an annuity in 2012, when I was 60 and a company pension in 2015, so no annuity purchase required.

The exact details are not clear, but I do remember qualifying for an enhanced rate. I also remember shopping around for an annuity to purchase.
 
Enhanced annuity rates are available for all chronic conditions. That does not mean that it is the correct route to take in all instances.
I have to be cautious here (as does DCUK) as it is illegal to give financial advise unless you are a qualified Independent Financial Advisor.

Thinks to look for are any guaranteed annuity rates you may be entitled to under you existing supplier among others.

Pension is probably the biggest financial decision we make after a mortgage, and you live with the consequences until your last breath
 
There is some useful information here ... http://www.sharingpensions.co.uk/annuity_rates.htm

Legal & General expect the UK annuity market to shrink in size from £12 billion to £2.8 billion following new pension rules from April 2015. This could see providers developing more flexible annuity products in the future or people considering flexible drawdown or fixed term annuities allowing them to take an income and to access their fund to consider their options again in the future. ​
 
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