When you’ve spent most of your working life paying into a pension plan and the time comes to retire you don’t have to accept the annuity offered by your pension company.
Simply put, an enhanced annuity is an annuity that pays a higher income. Depending on your lifestyle and whether or not you suffer from certain medical conditions, you may be eligible for an Enhanced Annuity policy - which could be a considerable amount more than that being offered by your current provider.
Are you Eligible for enhance annuity?
Some examples (but not all) of conditions which could increase your retirement income include:
Heavy
Smoker
Smoker
High or Low Body Mass
History of Cancer or Heart Attack
High cholesterol, Type 2 Diabetes
There is a feature available to all registered UK Pension Schemes known as an ‘Open Market Option’ which means you can shop around and take your annuity from whoever is giving you the best annual income.
In November 2016, the UK Financial Services regulator, the FCA, published a consultation paper (CP16/37) which estimated that “80% of consumers who purchase an annuity from their provider could get a better deal on the open market”.
In November 2016, the UK Financial Services regulator, the FCA, published a consultation paper (CP16/37) which estimated that “80% of consumers who purchase an annuity from their provider could get a better deal on the open market”.
