The company is launching a new process from 23 June which means it will be able to offer quotes to anyone on an individually underwritten rate. Each person’s demographic profile (including postcode and occupation) will now be assessed alongside lifestyle and medical factors, or can be used on their own, which means MGM Advantage will now be able to offer personally tailored rates to anyone looking for a secure income in retirement.
On average, rates have improved from between 0.1% to 2.9% since the introduction of the new underwriting basis.
Andrew Tully, Pensions Technical Director, MGM Advantage commented:
"People are still looking for a high level of guaranteed income in retirement, and annuities will continue to play a role in delivering that. But, everyone should be treated as an individual, with an annuity rate tailored to their own personal circumstances.
"Given the Budget changes, the market for annuities is likely to behave differently going forward. Companies will try to avoid attracting only people with excellent life expectancy in their family history buying annuities by using lower rates. But, by using customer’s demographic and medical information, we can help people make the most of their savings, as it will ensure they get the best outcome they can.
"The market will adapt very quickly and everyone will be underwritten in the next few years."
