Ahead of World Diabetes Day MGM Advantage is highlighting the potential income retirees living with diabetes are missing out on by not purchasing retirement income products that take their health conditions into account. Its analysis suggests that a 65 year old who has Type 2 diabetes could increase their income by £217 a year by purchasing an enhanced annuity rather than a standard annuity. One in ten people retiring each year have diabetes.
Andrew Tully, pensions technical director at MGM Advantage, commented: ‘Living with diabetes is difficult enough, without losing out on income in retirement. Unfortunately, we know that the majority of people who retire each year do not shop around for the best product to provide their retirement income. By doing their research and getting professional advice, those living with diabetes could increase their retirement income substantially.’
MGM Advantage has also released a list of the 10 main conditions for which it provided enhanced annuities in October 2014. While high blood pressure topped the list, Type 2 diabetes was fourth highest and conditions such as asthma and depression were also in the top 10.
Conditions for which MGM Advantage provided enhanced annuities, Oct 2014:
1 High blood pressure
2 Smoking
3 High cholesterol
4 Type 2 diabetes
5 Asthma
6 Angina
7 Mini stroke
8 Atrial Fibrillation
9 Chronic Obstructive Airways Pulmonary Disease
10 Depression
Andrew Tully concluded: ‘Many commentators have predicted the early demise of the annuity. However, for many people, the prospect of a secure, guaranteed lifetime income continues to remain attractive. So we should encourage anyone looking for an annuity to consider the right shape and type of annuity, and then secure the best rate. Unfortunately, far too many retirees are unaware of the significant boost in retirement income they can receive by disclosing health conditions and shopping around for the best deal.
‘A professional financial adviser will be best placed to provide the advice required to navigate the retirement income maze and ensure not only the right solutions but the best value is obtained by the retiree.’
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