RETIREES are missing out on £1.25bn of pension benefits annually, due to a lack of knowledge as to how poor health can positively influence annuity rates, according to Partnership, the provider of ill-health financial solutions for retirement and long term care.
Partnership estimates that half of UK retirees could qualify for an enhanced annuity rate because of their state of health. However, their survey of 3,000 retired or nearly retired people found that half of those over 50 and in poor health were unaware of this, potentially costing each of them £20,000 or more during retirement. Moreover, and despite the introduction of the Open Market Option (OMO) five years ago, three quarters of those nearing retirement are unaware what the OMO is, while just under three in five (58pc) of those already retired had failed to take advantage of it. ...
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