One in twenty (five per cent) of retired people who purchased an annuity said they either deliberately under-estimated smoking and drinking, did not declare one or more medical conditions or said bluntly they were not at all honest with their provider.
The enhanced annuity provider is urging anyone approaching retirement to be as open as possible with their financial adviser or pension company, as this can have a significant effect on the income they could receive from their pension pot.
Andrew Tully, MGM Advantage, commented:
“Although the majority of people are honest when filling in the forms to purchase an annuity, some people probably think being open about smoking, drinking or their weight will have a negative effect on the level of income they will receive. Nothing could be further from the truth. This is why it is vital people approaching retirement and considering their options are honest about any health or lifestyle condition they may have. This could have a significant and positive effect on the income they could receive from an annuity, as, on average, an enhanced annuity pays 23% more income than a standard annuity.”
