Enhanced Annuity

[Goosebumps]

Hello all.

Well I’ve reached the point where I need to be taking my private pension and an advisor has suggested that an annuity might be enhanced due to my heart condition. The form he has sent me to complete does have a tick box for AF and the number of ablations/cardio versions( 2 failed cardio’s for me)

I just wondered if any other forum members had been successful with similar applications. If so, the name of the annuity provider would be very useful.

Have to say that I’m sceptical for myself. I am long standing persistent AF, symptomatic with an enlarged left atrium, but no fast heart rate, so no ablation available on the NHS.( and yes I am up to speed with Mini maze opportunities).

Edit to clarify. I suppose I am asking whether AF alone was enough to get other members an enhanced annuity.

[Hidden]

I’d be surprised if you wasn’t!

Sorry, but whenever I see a financial advisor, it’s not long before you can see the look of expectation developing as I glaze over!

Hope you get the help you need…..

[Mrsvemb]

My late husband took an enhanced annuity due to cancer. It is certainly worth looking into because you have nothing to lose.

The pension was considerably higher than if he had left the individual pensions to pay out, including one which was a final salary scheme.

We took advice from a financial adviser at the time who gave us all of the figures for the different options, including 3 options for enhanced annuity. We chose to go with Aviva.

They also took into account my AF.

The other advantage for me was that in 2015 legislation changed. When my husband passed away I got 50% of his pension, but because it was an inherited annuity, I am not taxed on it. My husband would have been very pleased with this.

Worth speaking to a financial advisor. Costs nothing to do this. They would get a commission on whatever you go for.

[Goosebumps in reply to Mrsvemb]

Many Thanks for the information. If the advice given means that I move my annuity to another provider it will cost me 2% in fees, robbery I know. My current fund holder doesn’t do enhanced annuities, which is a shame because there would be no costs involved.

[Mrsvemb in reply to Goosebumps]

It may still be worth getting a quote for an enhanced annuity. There was a vast difference in monthly pension which could well cover the 2% you have to pay. A financial advisor could advise you better.

[MisterMagoo in reply to Mrsvemb]

2% is a ridiculous fee. How much of that is Dick Turpin's - sorry your Financial Adviser's - fee?Have you tried shopping around yourself?

[Mrsvemb in reply to MisterMagoo]

I think you have replied to the wrong person. The OP mentioned 2% charge by his current pension provider if he moves it. There were no charges for moving any of my husbands pensions to an enhanced annuity.

[Goosebumps in reply to MisterMagoo]

My feelings exactly. 2% just feels like robbery

[BobD Volunteer]

Can't quite understand that unless they decide that your life expectancy is less than normal. Personally my AVC needs me to live to at least 85 before they use up the money I put in regardless of any growth so I am determined to get my monies worth out of the thieving ********s.

[Goosebumps in reply to BobD]

True. Annuity rates have increased dramatically in the last year, before that I calculated that I had to live to 97 to get my money back from the thieving *******s. New quotes, unenhanced, now get me back to the 87 yrs old to get my money back. That’s still an awful lot of irregular heart beats away……

[Singwell]

Useful info. I'll discuss with my financial advisor. Currently only drawing a monthly 4% as I'm still working (small business struggling in current recession) but at some point I'll be drawing more.

[Atreides]

Quick answer - No for me!

[Geoffreyg]

As a recently retired Independent Financial Adviser I can strongly recommend you speak to an INDEPENDANT Adviser as the increased annuity benefits are definitely worth looking at.

Do not be deterred by the old perception that financial advice is a "rip off" .The profession of Independants now offer fee basis remuneration

[Goosebumps in reply to Geoffreyg]

I am at the initial stages of advice but I would be much happier with the fee based advice that you indicate is available. The advisor I am speaking to is not independent, so it looks like I will have to shop around now.

[MarkS]

I would be very surprised if you did manage to get an enhanced annuity as AF is generally not life limiting. I did get some figures a few years ago and even a TIA on top of my AF did not qualify. If you smoke however...

[Goosebumps in reply to MarkS]

Thanks for the info. I am extremely sceptical of there being any chance of an enhancement. The advisor described it as ‘kicking the tyres’ to see if there was any chance. I don’t have any other conditions shown on the health form apart from a stent.

[mhoam]

Whilst the annuity rates have improved recently they are still a poor form of pension provision, IMHO.

I put my pension pot into drawdown which allows me to take different amount each year as my circumstance changed. Of course the funds are still invested so they grow or not.

One other benefit of drawdown pensions is that you still own the funds and anything left can be passed onto your beneficiaries and are outside of IHT.

An independent financial advisor is definitely worth the initial outlay and they are NOT allowed to take commission on what they recommend without your specific written agreement.