Pete Cowell, Head of Annuities at Standard Life, comments on the misconceptions surrounding annuity rates and underlying health conditions.

A quarter (25%) of over 50-year-olds incorrectly think that annuities give people without underlying health conditions the best rates, according to research from Standard Life, part of Phoenix Group. When asked to answer whether it is true or false that annuities give the best rates to those without underlying health conditions, just 18% of over 50’s acknowledge that this is false. This means that many may miss out on the best deals in retirement due to confusion and lack of understanding around enhanced annuities, which can provide better rates.

Having a health condition can make certain insurance products, like life insurance, more expensive. However, enhanced annuities provide a more generous income depending on lifestyle factors, as well as the severity of various health conditions. The research, which explored overall knowledge of annuities amongst the over 50’s, revealed that over half (57%) said they didn’t know when asked whether it is true or false that annuities give the best rates to those with no underlying health conditions.

Pete Cowell, Head of Annuities at Standard Life, commented:

It is often assumed that having a health condition makes insurance products more expensive. However what many people don’t realise is that enhanced annuities can often provide a more generous income to those suffering from health conditions or shorter life expectancy. With annuity rates having risen significantly over the last year, the value and security they offer makes them hard to overlook, especially for those with health conditions.

Health and life expectancy are key factors that inform decision-making around savings and people’s retirement plans. This research clearly demonstrates that people should be made more aware of the benefits and additional income they may be entitled to. Greater emphasis on high quality advice and guidance is therefore more important than ever to ensure people of retirement age understand the range of annuities available to them. Options such as enhanced annuities can often provide good customer outcomes that better suit people’s health concerns and needs in retirement.

Full release: A quarter of over 50s incorrectly think that annuities give the best rates to people without underlying health conditions

✉️ Jennifer Smallwood, Standard Life, 07858 367818 / Jennifer_Smallwood@standardlife.com