Enhanced Life or Special-Situation Annuities

If you have health issues which potentially affect your life expectancy, you may qualify for higher annuity rates than traditional annuities offer.

Relevant problems could include chronic asthma, diabetes, heart attack, high blood pressure, kidney failure, multiple sclerosis, cancer or a stroke. You might also be able to get a Special Situation Annuity if you are overweight or smoke.

Some companies also offer higher rates to people who have worked in certain occupations or who live in certain areas of the country. Here are a few helpful facts:

• Tax-free cash – most pension plans have the option of taking a tax-free cash lump sum, before exchanging the residual fund for a series of payments.
• Ongoing income – you can choose your payment frequency and you will be taxed using the PAYE system.
• Death benefits – decisions concerning death benefits are made at the outset. The options are designed to provide for a spouse/civil partner/dependent’s pension. These choices include:
  • Funding a spouse/civil partner/dependent’s pension for up to 100% of what you received.
  • The spouse/civil partner/dependent’s pension can be for the full amount of the original pension or for a specified percentage.
  • You can guarantee for a period of five or ten years after setting up the annuity and your estate will still receive your remaining payments.

Advantages include:

• An income for life.
• You can elect for your spouse to receive an income for their life upon your death.
• Access tax-free cash at the outset.
• Higher annuity rates than a traditional annuity could be available.
• Simple contract and minimal paperwork needed to start the payment of benefits.

The selected income level is guaranteed and is not subject to future investment returns. Any options to provide benefits on death must be selected at the outset and cannot be altered in the future.

Robert Bruce Associates provide specialist, helpful and clear advice on annuities, so you can make an informed, fact-based choice. If you have any questions or if you would like to arrange a discussion call 0845 600 6080 or email info@rbaifa.co.uk.