LV= discovers thousands missing out on enhanced annuities
Retirement specialist LV= has commissioned research which reveals that British retirees may be losing out on £56.6m annually by not buying an enhanced annuity.
The findings of the ‘Missing Income’ report states that 150,000 individuals could bolster their financial situation by acquiring an enhance annuity, as opposed to a standard one.
People with certain lifestyle or healthcare conditions, including being overweight or having high blood pressure, can benefit from an enhanced annuity as it can provide them with a higher income as enhanced annuities are calculated on an individual, specific basis.
LV= estimates that roughly four out of 10 could qualify for an enhanced annuity, and although last yeat the enhanced annuity market expanded by 31.9% it remains substantially below the four out of 10 level.
Head of Annuities Matt Trott has stated that just over 27,000 people purchased an enhanced annuity last year, but 150,000 more could’ve qualified.
Trott went on to say that the extra income would be particularly welcome given the present economic circumstances.
Interest rates are at an all-time low of 0.5%, and today the Governor of the Bank of England, Mervyn King, had to write to the Chancellor to explain why the official inflation rate was significantly higher than its target.
As many elderly people rely upon their savings, the ultra-low interest rates can have a crippling effect on their living standards, and with food inflation persisting costs are rising for pensioners as income falls.
Category: Insurance News
Visited 1793 times, 2 so far today
Comments (0)
Trackback URL | Comments RSS Feed
There are no comments yet. Why not be the first to speak your mind.