Enhanced pension annuities look set to add an estimated £18million to the annual retirement income of Just Retirement customers.
Enhanced pension annuities are designed to give those with potential health problems a higher pension income, to compensate for a shorter life expectancy. Smokers and those who are overweight are among those who may qualify for an enhanced annuity.
And, as the difference between an enhanced and standard pension annuity can be huge, Just Retirement has launched a guide to underwriting, which should help advisers to identify the breadth of medical conditions that could constitute an enhanced pension annuity, and increase the number being sold.
As a result, Just Retirement believes it will add more than £18million to its customer's pension incomes this year. Commenting, head of annuities at Just Retirement, Peter Ellis said:
"By taking into account more than 1,500 medical and lifestyle qualifying conditions, Just Retirement is able to add significantly to its annuitants' retirement incomes.
"In total, we estimate that this year alone our customers will receive over £18million more retirement income than would have been the case had they bought an annuity on standard terms."
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