Ignorance of how health can positively influence annuity rates costs retired people £1.25bn in pension benefits a year, according to research by Partnership.
The provider’s survey of 3,000 consumers shows half of people over 50 with poor health do not know their illness could entitle them to a greater annuity in retirement. Partnership says failing to act on the entitlement could potentially cost people more than £20,000 during retirement. The research found around 90% of pensioners with poor health bought a greater monthly annuity by switching provider. However, a total of 75% of people nearing retirement do not know what the open market option (OMO) is and almost 60% of retired people fail to take advantage of it. More than half of d...
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