MGM Advantage: Growth of enhanced annuity market

Aston Goodey, Director of Sales and Marketing, MGM Advantage comments, "Enhanced annuities have experienced a strong growth in sales in recent years and we aren't surprised to hear that they now account for almost one in five of annuities sold.

"The products offer fantastic value, paying out around 22 per cent more income each year compared against standard products. Over the course of retirement a man eligible for an enhanced product with a £50,000 pension pot will find themselves over £12,500 better off.

"Awareness of enhanced products is on the up and those approaching retirement increasingly realise that enhanced products are open to people with relatively minor health conditions such as high blood pressure.

"However, too many people still take the first annuity offered to them and fail to shop around or investigate whether they might be eligible for an enhanced product. Once you have converted your pension pot into an annuity there is no going back, which makes this one of life's biggest financial decisions. Anyone on the verge of retirement needs to consider their options very carefully to ensure they maximise their retirement income pot and should therefore seek professional advice."