Last week we reported how sales of enhanced annuities rose in 2010 to £2.47 billion. With more people retiring this year than in any previous year, experts are predicting that sales will continue to rise. With rates being at an historic low, gaining annuity enhancement is more important than ever for the babyboomer generation. Nigel Callaghan writing on the Hargreaves Lansdown blog, notes that only 1 in 8 annuitants actually manages to secure an enhanced annuity, despite some estimates that over 50% of those who apply are actually eligible.
He goes on to argue that some of the larger pension annuity providers do not promote enhanced annuities and instead try to sell a poorer value one. The statistics noted above back-up the assertion that not enough of the UK’s retirees are getting adequate information about which is the best annuity for them. Considering there are over 1,500 individual medical conditions which can qualify someone for enhancements, it is staggering that only 1 in 8 actually get an enhanced annuity. More severe conditions such as heart attacks or strokes can boost your income by as much as 40%, so it really is worth comparing providers and declaring all medical conditions past or present.