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Smokers puff their way to much higher retirement income
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PostPosted: Mon Aug 03, 2009 12:01 pm 

Joined: Tue Mar 10, 2009 1:21 pm
Posts: 1457
Location: Hampshire
Press release

Smokers puff their way to much higher retirement income – shock new figures
from Rockingham Retirement show how it can pay to be unhealthy in older age

Pensioners in poor health can live a more comfortable life with an enhanced

Rockingham Retirement advises that an enhanced annuity can boost a client’s
retirement income by a massive 80%

Yet the best annuity deals for many pensioners with health problems going

SMOKERS are boosting their retirement income by thousands of pounds a year,
according to the latest figures from retirement income specialist Rockingham

And pensioners with serious cardiac problems are also seeing their income
nearly doubled because their poor health means they are entitled to an
enhanced annuity.

“Pensioners who smoke or who suffer from ill health can look forward to a
much more affluent lifestyle if they seek an impaired annuity deal when they
cash in their pension pot instead of accepting the default option,” says
Rockingham Retirement’s Steve Hunt.

Recent research by Rockingham Retirement shows that an impaired annuity
could put an extra £3,500 a year in the pocket of a 65-year-old male with a
£100K fund – enough to make a big difference to his quality of life in

“People approaching retirement must ask themselves what kind of life they
want to live as a pensioner,” said Hunt.

“Do they want to be counting the pennies or setting off on a cruise? It may
sound facetious, but the fact is that they really could be enjoying a much
more comfortable lifestyle if they shopped around for the annuity to which
they are entitled.

“The difference in what some people are accepting and what they COULD be
getting is staggering,” Hunt adds. “We recently increased a client’s annual
income by 80 per cent, just by looking at the all the options available to
him. It’s a tragedy that there are pensioners living on greatly reduced
means simply because they didn’t get – or seek - the advice they deserve.”

For example, a male aged 65 with a pension fund of £100K with AXA could
receive an annual income of £5,852.00 if he does nothing and accepts the
default option equal to AXA’s commercial annuity rate.

If he makes the effort to find the best non enhanced rate on the market –
currently with Aegon Scottish Equitable - this would increase to £7,148.04.

But if he is suffering from ill health, his income could soar – to £9,373.08
or more. This is an actual annuity quote from MGM Advantage based on a
non-smoker suffering from severe cardiac infarction.

That’s a difference of over £3,500, enough for a holiday of a lifetime - and
that is every year for the rest of his life - or simply the peace of mind of
having an extra £300 a month to live on.

Annuity figures for 65-year-old male with £100k fund, impaired figures from
MGM Advantage:

General Rate
Best in Market
Aegon Scot Eq
Hypertension and high blood pressure
Hypertension and high blood pressure Insulin Diabetic
Hypertension and high blood pressure Insulin Diabetic
NON Smoker
Severe cardiac infarction
NON Smoker

“Let’s not beat about the bush on why this is the case,” says Hunt. “The
increased rates are available because the recipients have a shorter life

“Put simply, if there’s a chance you haven’t got that many years to enjoy
your retirement, you should be able to live life to the full while you can.
For the majority of people, that means having a decent income.”

As a rule, the more serious the condition, the more money the applicant
should get.

“The rates payable do depend on the illness and the severity of the
condition, but if you don’t ask you don’t get and the best person to ask is
an annuities specialist,” said Hunt.

“We can always be relied upon to search for the highest annuity rates on the
market, and we guarantee to find the highest income possible – at no cost -
regardless of the fund size,” he added.

Press enquiries:

Steve Hunt
01832 281866

Managing Director

[email protected]


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