Posted August 13th, 2010
Impaired life annuities provide a greater pension income to those with shorter life expectancies than would be available from standard annuities. Impaired annuities are intended for serious conditions such as:
• Chronic heart disease
• Cancer (secondary and some primary)
• Chronic Lung Disease
• Parkinson’s Disease
• Alzheimer’s Disease
Please note this list is not exhaustive.
Enhanced annuities also provide an increase over the standard rate available and are given for lifestyle conditions such as
• Diabetes
• Heart attack
• Chronic asthma
• High blood pressure
• High Cholesterol
Again, this is not an exhaustive list.
The market is maturing and there are providers who specialise now in areas such as smoker annuities and more recently, postcode annuities. These work on the basis that statistically, people in different parts of the UK have different life expectancies.
Many people when taking their pension share on divorce decide to purchase an annuity. If you are considering purchasing an annuity as part of your pension share, please stop and consider whether you might benefit from one of these annuities.
If you require any further assistance, please contact us on 0800 092 1229 or email advice@thedivorceifa.co.uk
Tags: Alzheimer's disease, Annuities, Annuity, Cancer, Chronic asthma, Chronic heart disease, Chronic lung disease, Diabetes, Divorce, Enhanced annuities, Greater pension income, Heart attack, High blood pressure, High Cholesterol, Impaired life annuities, Lifestyle, Parkinson's Disease, Pension, Pension and divorce, pension share, Postcode annuities, Shorter life expectancies, Smoker annuities, Standard annuities, Standard rate | Posted in Annuity, Ill Health |
Comments: No Comments yet!
Posted July 30th, 2010
From 2011/2012 the Government announced in its budget their intention to remove the compulsory need to purchase an annuity from age 75.
As an interim measure, legislation will be written into the Finance Bill 2010 to increase the purchase age to 77. This increase in the age to 77 by which time the member must secure an income has effect on or after 22 June 2010. The change applies equally for Inheritance Tax purposes to members who die on or after that date.
Since April 2006, it has not been compulsory to purchase an annuity at age 75 (although some individual schemes insist on it) when an alternatively secured pension (asp) became an option. ASP has not been universally popular due to the poor income rates and punitive tax charges (up to 82% on death!).
The Government intends to consult shortly on the finer detail of what is planned. Watch this space on developments which in my opinion, will have far reaching implications for divorce, annuities, annuity rates and retirement planning.
If you require any further assistance, please contact us on 0800 092 1229 or email advice@thedivorceifa.co.uk
Tags: 82%, Age 75, Age 77, Alternatively Secured Pension, Annuities, Annuity, Annuity rates, April 2006, ASP, Compulsory annuitisation, Divorce, Pensions & divorce, Retirement Planning, Tax | Posted in Annuity |
Comments: No Comments yet!
