Majority of people could take out annuities

by Richard Kilner

Story link: Majority of people could take out annuities

Enhanced annuity provider Just Retirement has claimed that lifestyle and health data indicate that a larger number of people could claim for annuities to boost income during retirement.

Surveying information from a diverse range of sources, Just Retirement has concluded that between 55% and 65% of retiring people could have conditions enabling them to claim for an enhanced or impaired life annuity.

Head of Research Nigel Barlow has stated that the General Lifestyle Survey shows that 56% of people aged 65 and 74 report a long-standing illness.

Barlow went on to say that annuities are now available to more people due to an increased level of sophistication in underwriting.

Amongst older people smoking has declined to 12%, although obesity and heavy drinking is higher than might be expected.

Certain conditions, such as cancer, may be obvious as stand alone grounds for an enhancement, but other conditions such as diabetes can also allow an individual to qualify.

Barlow has said that the annuity industry has created the Common Quotation Form to hep retiring people discover what enhancements they might be able to take up.

Enhanced annuities have grown rapidly in popularity, with a 41% surge in sales to £1.26bn in the first half of 2010 compared to the same period last year.