If you’ve decided to purchase an annuity to give yourself a guaranteed income during retirement, it’s crucial that you access the right one for your circumstances.
We often hear from people who have been mis-sold annuities that were designed for people in better health. If you have a condition such as high blood pressure, diabetes or prostate cancer, you may be entitled to a higher annual income from your annuity than someone without such conditions.
This is because annuities are calculated based on health and estimated lifespan. If a person has a serious health condition that could shorten their life, this needs to be taken into account when the annuity is purchased.
For example, if a person in good health has saved £200,000 for retirement and someone with high cholesterol has saved the same, the annuity should, in theory, leave the person with high cholesterol with a greater annual income than the person in good health. This is because the healthier person is predicted to live longer and therefore their retirement savings will need to last longer.
We often see financial advisors offer inappropriate annuities to their clients. Often, they’ll recommend the products that will help themselves earn the most commission, overlooking the products that are actually most suitable for the client in the process.
This can prove incredibly costly for the client and can leave them with far less money in retirement than they deserve.
If you think you might have been mis-sold an annuity, ask yourself the following questions:
If your financial advisor or pension provider failed to ask the above questions, it may be the case that you’ve been mis-sold your annuity.
There are countless conditions that can make pensioners eligible for an enhanced annuity. Here are some of the most common.
If you believe you’ve fallen victim to an annuity mis-selling scam, please get in touch with our team of experts now. We’ve spent years fighting to obtain the financial redress our clients deserve, and we’ll do everything we can to help you too.