Even a simple factor for example where you live can have an impact on your monthly pension income. Some companies will pay you more each month if you happen to live in an area where statistically people die at an earlier age than the national average.
Even your postcode can make a difference to some companies, based on the average health of your area. Some companies ignore it!
The map show annuity rates vary around the country. These rates are for a 65-year-old man with a £100,000 pension pot buying a single life level annuity with a five-year guarantee.
All basic Annuity comparison sites are based on assumptions of average habits. Most assume you are of average weight, are a non smoker, drink less than the recommended daily limits of alcohol and have some exercise.
To get the best possible quote for you requires a personalised review of you and your personal circumstances.
Macintosh Heywood Ltd can arrange for you to discuss your personal circumstances with a qualified Advisor who will explain all the different options available to you. This interview will form the basis of your personalised quotation designed to help you make the right decision for you and your family.
Any illnesses and even genetic historic conditions can increase your monthly income by up to 40%.
The reason your health is so important to your pension income is the pension company will factor in your life expectancy when calculating your monthly income. In the simplest terms the pension providers expect to have to pay you a monthly income for a lot longer if you are in good health. Annuity calculations are the exact opposite of Life Insurance Calculations where the insurers are looking for health problem free clients !!
You may receive a far higher income from an annuity provider if you are in poor health Different providers place more emphasis on certain conditions than others.
As you can see from the above diagram, based on your health and lifestyle you could see up to 52% extra before even taking into account the discrepancies between different providers.
Provider quote variances
You could be 10% better off just by shopping around, this is before taking into account your location, health and lifestyle.
|Quotes for a single-life, level annuity for a 65-year-old non smoker with a £100,000 pension pot.|
|Canada Life Ltd||£6,384|
|Saga (via L&G)||£6,180|
|Legal & General||£6,168|
|B&CE Insurance Ltd||£6,012|
We Cannot OverEmphasize the Importance of Getting Professional Advice Before Taking Your Pension
*Information is taken from “The Retirement Annuity Lottery, November 2010, Which? Magazine”