Pension annuity planning - is scleroderma recognised?

[LadyTrundle]

I have to make decisions about what to do with my pension savings, by April. I've read all the leaflets and they mention you might get an 'enhanced annuity' which means they'll pay you more each month - if you have a life-limiting illness. But the online assessment form only had things like Parkinsons, Cancer, and some others listed. Has anyone had experience of their SSc meaning they get higher pension payments from their annuity? If so, what proof did you have to give? Clearly the big pension companies (Aviva in my case) have never heard of it.

Thanks as ever! Hope you're keeping well and warm. I'm looking after my parents at the moment. They keep their heating VERY high. Happy daughter!!

[fingers]

I would get a trusted advisor about your pension, i personally wouldn't touch an annuity, drawdown is best option, because you draw monthly amount but your pension pot still keeps growing, alternatively contact citizens advice, to get impartial advice. stay warm.

[ArthurFoot]

I don't know although I am not far behind you and hence I am very interested to know how you get on. I used to have annual travel insurance and had to pay an extra premium because I declared I had CREST, also my bank refused to give me insurance on my mortgage in case of unemployment because of CREST. So they do know what Scleroderma is if you shop around and therefore their underwriters should take it into account and increase your annuity payment. You do not have to get an annuity from Aviva .... I would get a really good independent financial advisor who can look at the best options .... annuities are almost double what they were a few years ago so seriously consider them ...drawdown may not be the best option for you right now with annuities paying out so high .... you could do half and half, you have lots of options and a good FA will be able to talk you through what your choices are ... just be careful choosing your financial advisor .... do your research.

[LadyTrundle in reply to ArthurFoot]

thanks ArthurFoot. That’s really good advice and I’ll let you know how I get on. Aviva do say to shop around and have info about a website unbiased.co.Uk to find financial advisers.

[ArthurFoot in reply to LadyTrundle]

Just be cautious as drawdown is not always the best option and you cannot guarantee the return you get on your invested pension as many found out last year when the market plummeted! Also think carefully about your needs .... and work on the basis that due to inflation any pension will be worth approximately half in 20 years time unless it is index linked! The market is very volatile at the moment and there are so many uncertainties. Good luck

[LadyTrundle in reply to ArthurFoot]

Hello ArthurFoot. Just to let you know that I did go through the process of asking Aviva about an Enhanced Annuity, and the lady very carefully took me through all the questions and asked me about all the related and unrelated conditions, what I took for them, whether I had been hospitalised for any of them etc etc. She was very patient (took about 1.5 hours!- but she had called me back so it wasn't on my phone bill). I had to keep saying 'well, it's not going to get better' or 'not YET...' etc. At the end she sent it to the underwriters (as we knew she would have to) and within a week they got back in touch to say I would qualify for enhanced annuity payments. So worth doing.

I can't say quite what % uplift there will be as I got them to quote for start-low, rise with inflation rather than the flat rate that the other quote had been on. And they also said to d=shop around, get advice - and that not all annuity providers will necessarily come to the same conclusion. But they did send me a list of exactly the information I had given them about the health status, so I can get like-for-like comparisons elsewhere.

So as I say, worth doing - but set aside half a day for it!

[ArthurFoot]

Wow! That's great to hear and the next thing is to try other annuity providers maybe through a financial adviser (get him or her to the the hard work! ) I'm so glad it was worth the time invested ... maybe consider Canada Life ... they have a fairly sound reputation. The next thing is have you applied for PIP? Which if you qualify may help you .... it is not considered as income so is not taxable but if you do apply get advice from Citizens Advice. In my experience Sceloderma patients are very good at trying to be upbeat and positive about how bad things are and effectively talk themselves out of what they are entitled to!

[LadyTrundle in reply to ArthurFoot]

Yes, it was worth is - we've decided to defer for a year so have time to shop around and will definitely speak to an IFA (my husband used one when he retired who seemed spot on). Not sure about PIP - at the mo I think I wouldn't qualify. Having just gone through the Attendance Allowance and Blue Badge processes for my parents, I've a fair idea of what they ask... but maybe I'll take a closer look. Yes, we do like to be upbeat don't we!

[ArthurFoot]

I just applied and blow me qualified ... it meant I automatically qualified for a blue badge too....it is going to make such a difference .... the first bit of good news I've had in years! I was given some great advice by CAB which made a real difference. Take care of yourself and good luck with making the pension work for you.

[LadyTrundle in reply to ArthurFoot]

good for you and good luck to you too. This is such a supportive community. Silver linings!