Pensions - Articles - Partnership comments on IRESS At Retirement Report

 “Following the explosive announcement in last year’s Budget, the UK annuity market was naturally likely to be down as people waited for the introduction of the freedoms and the anticipated new products before making any choices. However, it is interesting to see that enhanced annuities now account for 35% of the market – the highest proportion for over three years.

 “This clearly highlights increasing recognition of the value that medical underwriting can provide to consumers who are looking for a good retirement income deal. As an industry we need to work harder to ensure that people understand that even if they have a relatively common medical condition such as diabetes or high blood pressure, they can get a better deal with these products.

 “However, as with other areas of the market, it is vital to shop around as the difference between the best (5.7%) and worst (4.5%) rates in March was over a quarter (1.2%). This might not seem like much but for someone with a £100,000 pension pot this could mean a loss of £24,000 over twenty years.”