Beware you could lose 40% of your retirement income each year for life!
How?
At age 60 or above you will receive a letter from your pension company. It will ask you to sign and return. DON’T!
Make sure you seek advice from a professional at this point. Don’t just ask your friends or colleagues they may have made the same mistake. Be sure that you understand your retirement options and how these will help you to achieve your retirement goals. Only then will you be in a position to return the letter or make alternative plans to meet your own retirement objectives.
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Do you know your retirement options?
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Do you know you don’t have to take the annuity offered by your pension provider?
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Do you know you don’t have to take an annuity at your normal retirement age?
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Do you know you may be eligible for an increased annuity income if you smoke or are not in good health?
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Do you know you can take 25% tax free cash and an income whilst remaining invested in markets up to the age of 75 instead of an immediate annuity?
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Do you know you can access 25% tax free cash lump sum from your pension at age 50 without taking an income if you are still working and do not require the income?
Speaking to your financial adviser may save you money or increase your income and quality of life in retirement. If you do not seek advice you may miss out on extra income in retirement. If you are 50 or approaching 50 and haven’t yet investigated your retirement options I would urge you to speak to your financial adviser.
Below are some case studies. Source (just retirement)
Eleanor
Eleanor, aged 60 is nearly two stone over weight and does little exercise. She has suffered from hypertension (high blood pressure) for ten years and is on prescribed medication. Her condition, where the blood pressure is persistently raised, increases the risk
of stroke, heart attacks, heart failure and kidney disease. With enhanced underwriting based on these conditions and life style, Eleanor can qualify for a 33% enhancement over typical Open Market Option annuity rate.
Scenario is based on a woman aged 60 with a fund value of £40k. Quoted Single Life, monthly in advance, nil guarantee, level and no Value Protection. Correct as at 01/07/09. Typical OMO rate sourced
from The Exchange 01/07/09
+33%
Ted
With a 30-a-day habit, its obvious Ted, aged 60, can get a smoker annuity for which he could get a 20% enhancement over a typical Open Market Option annuity rate. Dig a little deeper and Ted reveals he suffers from emphysema, has been hospitalised in the past, is on daily medication and his daily activities
have been severely reduced. With enhanced underwriting based on these health conditions and lifestyle, Ted’s case could qualify for up to a 40% enhancement over a typical Open
Market Option annuity rate.
Scenario is based on a man aged 60 with a fund value of £40k. Quoted Single Life, monthly in advance, nil guarantee, level and no Value Protection. Correct as
at 01/07/09. Typical OMO rate sourced from The Exchange 01/07/09
+40%
David
David is a smoker, averaging 10 cigarettes per day so would qualify for a smoker annuity. On further investigation it was established David is overweight and is also taking prescribed medication for high blood pressure and high cholesterol. With enhanced underwriting based on these health conditions, accompanied by his smoking habit, David’s case could qualify for up to 40% enhancement over a typical Open Market Option annuity rate.
Scenario is based on a man aged 65 with a
fund value of £40k. Quoted Single Life, monthly in advance, nil guarantee, level and no Value Protection. Correct as at 01/07/09. Typical OMO rate sourced from The Exchange 01/07/09
+40%
Contact us now to dicuss your retirement options with an independent financial adviser. Our intial consultation is always free and with no obligation to proceed. Call 0800 435648 between 8am and 6pm Monday to Friday.
Tags: Annuity, Pensions, retirement, tax free cash
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