Lack of awareness over enhanced annuities is causing a loss of potential income for over a 150,000 investors every year, according to recent reports. Each person who fails to check their own eligibility for one of these types of annuity could be missing on upto 40% of potential income. Although this figure is generally offered for more serious conditions such as heart attacks, even lesser medical conditions can mean that enhanced rates are offered to annuitants.
The Association of British Insurers have calculated that around 25% of those who take an annuity could be eligible for enhanced rates. Nigel Callaghan from pension experts Hargreaves Lansdown argues that the current figures are not a good reflection on the industry stating that “...this is a shocking indictment of the present system. The odds are stacked against investors in securing a fair annuity deal.”
He said that too many companies currently offer conventional annuities in order to maximize profits, instead of offering annuitants all the choices open to them.
