Pensions  

MGM reveals top 10 conditions for enhanced annuities

High blood pressure has topped a list of the 10 main conditions for which MGM Advantage provided enhanced annuities in October.

The condition beat smoking, which was followed by high cholesterol in third. Type 2 diabetes was fourth, with the provider highlighting the potential income retirees living with diabetes are missing out on by not purchasing enhanced annuities.

MGM’s analysis of its own quotes suggested that a 65 year old who has Type 2 diabetes could increase their income by £2,171 a year by purchasing an enhanced annuity rather than a standard annuity. Research commissioned by the firm and carried out in October among 2,060 UK adults aged over 55, found one in ten people retiring each year have diabetes.

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Andrew Tully, pensions technical director at MGM, said: “Unfortunately, we know that the majority of people who retire each year do not shop around for the best product to provide their retirement income.

“Unfortunately, far too many retirees are unaware of the significant boost in retirement income they can receive by disclosing health conditions and shopping around for the best deal.”

Surprisingly, asthma came fifth on the list, followed by angina, mini-stroke, atrial fibrillation, Chronic Obstructive Airways Pulmonary Disease, and depression.

Mr Tully added: “A professional financial adviser will be best placed to provide the advice required to navigate the retirement income maze and ensure not only the right solutions but the best value is obtained by the retiree.”

peter.walker@ft.com