Retirees could lose £57m by avoiding enhanced annuities

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UK retirees could be missing out on up to £56.6m of retirement income each year by not purchasing an enhanced annuity, new research suggests.

LV='s 'Missing Income' report highlights over 150,000 people could increase their income in retirement by taking an enhanced, rather than a standard, annuity. Despite the UK enhanced annuity market growing by nearly a third (31.9%) in 2008, it is still a long way short of the four out of ten annuitants that LV= estimates could qualify for some form of enhancement, and therefore a higher annual income in retirement. "It's definitely a positive sign that the enhanced annuity market is growing. More people are taking up the Open Market Option, which allows them to buy an annuity from the...

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