Enhanced Annuity – Case Study
Mr Greenwood was approaching his 65th birthday and selected retirement age. He had received a pack from his current pension provider informing him of his pension options and offering an income of £1,062.21 per annum in return for his pension pot which had a value of £28,884.88.
He contacted Simpson Millar Financial Services to discuss his retirement options further and receive impartial advice.
During the completion of a detailed health and medical questionnaire Mr Greenwood informed the adviser that he has suffered a stroke approximately 6 months earlier. After taking down full details of the event and Mr Greenwood’s recovery the adviser submitted this information to all of the enhanced pension annuity providers within the marketplace where Mr Greenwood was individually and comprehensively underwritten.
During the advisers discussions with Mr Greenwood it was also established that he was married and that his wife held no personal pension plans in her own right with only the state pension and Mr Greenwood’s pension income to provide for them in retirement.
The adviser informed Mr Greenwood that when purchasing a pension income via an annuity plan there was the option to include a spouses pension for his wife, at a level determined by him as the client, thereby providing some level of income for Mrs Greenwood in the event that he was to die before her.
After analysing the quotes received from all of the providers it was established that by including Mr Greenwoods health and medical information within the underwriting of the annuity plan an income of £1,278.00 pa was being offered from the most competitive provider, effectively £215.79 or 20.32% higher than the pension income offered from his current provider.
Based on the current life expectancy figures this could amount to £4,704.22 in extra income over Mr Greenwood’s life. This income also included a 50% spouses pension for his wife, providing her with some level of income protection in the event of his death.
What did the client achieve by receiving advice from Simpson Millar Financial Services Ltd?
- Independent and Unbiased advice
- Comparison of quotes from all enhanced annuity pension providers within the marketplace
- A 50% spouses pension for his wife providing income protection
- An income effectively % higher than if he had simply taken the amount offered by his existing provider
- Peace of mind that he had received the highest level of income available tailored to his income needs