Sales of enhanced annuities have soared in recent years. Jenna Towler discovers the key factor in getting the most suitable product remains taking financial advice.
During the past decade enhanced annuities, which take health and lifestyle into account, have moved from being a niche product to a mainstream option under advisers' consideration for pension clients. The overall market grew from £3bn in 2011 to £4.5bn in 2012 - back in 2004 it was just £462m. According to provider MGM Advantage up to 70% of retirees could qualify for a better income due to health or lifestyle factors. Yet its analysis has found a disparity between people who take advice and people who do not. It found enhanced annuities account for only 4% of the annuity market...
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