Extra Pension for Smokers / Ill Health

Getting the most out of your pension fund should be everybody’s quest when they buy an annuity. Sadly, all too often far too many people simply look at the figures that have been offered to them by the company they have been saving with, and choose one of the small number of options shown to them.

Not using your right to shop around for the best deal is bad enough, but a very large number of people are not aware that you can get even bigger pensions if your life expectancy is likely to be “less than the going rate”.

When insurance companies work out how much pension to give people in exchange for their pension funds they have all sorts of clever people that do complicated maths involving interest rates for government borrowing, how long people are statistically going to live, and a modest slice of profit on top.

The bit that is key for us is “how long are people statistically going to live” because naturally some people will die sooner than others, and they will effectively subsidise those that live longer.

Now if you are one of those who may fall into the former category, wouldn’t it be a good thing to have more of your share of the cake than subsidising other people. Basically this is what happens with what is called an “Impaired Life Annuity”. And you don’t have to be “at death’s door” to qualify.

If you are a regular smoker and have been for a number of years you are likely to qualify. If you have certain illnesses you may qualify. Even high blood pressure combined with another disorder may mean you could get a higher level of pension. There are many situations where extra pension is available.

There are a number of companies in the market place that will offer these types of extra pension, and generally you will have to fill in a short questionnaire for them to decide whether or not you qualify. They won’t charge you for finding out and an Independent Financial Adviser can help you through this process.

Remember, when you buy an annuity you have one chance to get it right, and if you don’t use your open market option you could end up losing out thousands of pounds over the rest of your lifetime. We will be happy to help you find the best deal for the right type of pension for you. Simply click on the contact us button and we will get straight back to you.

A pension is a long term investment. Your eventual income may depend on the size of the fund at retirement, future interest rates and tax legislation.

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