A quarter of over 50-year-olds incorrectly believe that annuities offer the best rates for individuals without underlying health conditions, with only 18 per cent recognising this as false, potentially leading to missed retirement deals.
While 95 per cent of over-50s think that current health matters when making pension selections, 57 per cent are unsure about whether annuities are the best option for people without health issues.
The research suggests a need for more education on the advantages of enhanced annuities for individuals with health concerns, as evidenced by 26 per cent who chose or plan to select annuitisation because of a pre-existing medical condition.
Standard Life head of annuities Pete Cowell says: “It is often assumed that having a health condition makes insurance products more expensive. However what many people don’t realise is that enhanced annuities can often provide a more generous income to those suffering from health conditions or shorter life expectancy. With annuity rates having risen significantly over the last year, the value and security they offer makes them hard to overlook, especially for those with health conditions.”
“Health and life expectancy are key factors that inform decision-making around savings and people’s retirement plans. This research clearly demonstrates that people should be made more aware of the benefits and additional income they may be entitled to. Greater emphasis on high quality advice and guidance is therefore more important than ever to ensure people of retirement age understand the range of annuities available to them. Options such as enhanced annuities can often provide good customer outcomes that better suit people’s health concerns and needs in retirement.”
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