Pension annuity uplift for type 1 diabetic?

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Richart

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Type 1
I've read that if you are a type 1 diabetic you can get a higher pension annuity when you retire and figures I've seen quoted are 30% higher (although it's unclear from the wording on those articles whether this is average, higher end, or minimum).

I'm getting close to retirement and have a personal pension plan with a fund value I can do what I like with. Plan A was to use this as draw down while my wife (who is in the better pension and has a spouses pension in place if she pre-deceases) would leave taking her pension until a later date when she would obviously get a better annuity. However I am now considering whether with the potential uplift it might just be better to take the annuity and have my wife take her pension earlier.

I appreciate that no-one can give financial advice and I'm not looking for this, but in order to help make a decision I was wondering if anyone had experience of retiring and getting an uplift for being a type 1 diabetic. Obviously I could go through the quote system and find out but this will be quite long winded and because I have other options like draw down I'm only really in the planning stage of thinking about my options and looking at a ball park for what I might get in the way of an uplift so I can decide whether it is worth exploring to the quote stage.

I'm type 1 for over 30 years controlled by insulin before meals and a 24 hour background dose at night. No huge health issues beyond this and looking to retire at about 62 (but could be a couple of years later if we use savings first before eating into my pension).

So does anyone have experience, or an opinion, on what sort of annuity uplift I can expect and is there a minimum uplift simply for being type 1? I'm only looking for very round figures like 5%, 10%, 20%, 30% estimates and not basing any decision on the replies just more for whether taking an annuity might be worth exploring further.

(By the way it's Richard but that username was taken!)
 
There are probably too many options to give you any real answer.
Whether you decide on taking an inflation linked annuity and a guaranteed spouses pension could offset any uplift for type 1.
Although now is a good time to look at annuities, high inflation and interest rates mean there are a lot better deals out there than before.
And an independent financial advisor is a good start, they will have a lot more experience of the best companies for this type of annuity, and quite often it easily covers the hit from their commissions.
Just choose one that doesn't charge you if you don't take any products through them

I looked at annuities myself, but for the moment I'm staying with a SIPP in drawdown, a company pension, a few other investments here and there, and a fund with a guaranteed annual "with profits" from the good old days, but the interest rates do look tempting again to think about converting that.
 
As a rough idea there's a comparison here. Just use random letters for the email address (abc@def.com) & 01234 567890 for the phone number to prevent being hassled by sales people. Just plugging mine in I was surprised at the basic figure as they've always been extremely poor whenever I've looked before. They didn't ask about type of diabetes or meds so that probably has to be refined down the line. Adding diabetes as a condition added 14% for me at 66 using today as the retirement date.

As @travellor says above, this will be non-index linked with no provision for a spouse. So the amount will never go up & if when pass, the annuity is cancelled. Adding provision for either will reduce the amount payable.

Having just started dipping into mine, I'm currently taking uncrystallised lumps sums (UFPLS), carefully calculated to minimise taxation. I have chosen this route as it's completely flexible & doesn't require me to take a lump sum. I have no particular need of a lump sum & it's likely to grow more in the pension pot that anything else I might invest it in, without significant risk.

A good starting point, if you haven't already, is to book a Pension Wise appointment. They won't give you advice but will talk you through all the options.
 
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Thanks- I'm OK on the "what decision to make" part of it but just hoping that someone reading the forum can say what a typical uplift simply for having type 1 diabetes might be (and there must be people on this forum who have taken out an annuity with an uplift). I would shop around or get a financial advisor involved if it seems worth investigating but if someone comes back and says they just got 5% extra on their pension rather than the 30% that has been mentioned on websites then I would stick with my draw down Plan A. 30% makes it more tempting.
 
@RBZ5416
Thanks- my 2nd post was written before I saw yours and that's the type of thing i was after (ie 14% without any further health questions that might improve it a bit).
 
Interestingly the best provider without diabetes was different to the best with. Legal & General were the best with, so might be worth trying a quote direct with them.
 
Richart said:
I've read that if you are a type 1 diabetic you can get a higher pension annuity when you retire and figures I've seen quoted are 30% higher (although it's unclear from the wording on those articles whether this is average, higher end, or minimum).

I'm getting close to retirement and have a personal pension plan with a fund value I can do what I like with. Plan A was to use this as draw down while my wife (who is in the better pension and has a spouses pension in place if she pre-deceases) would leave taking her pension until a later date when she would obviously get a better annuity. However I am now considering whether with the potential uplift it might just be better to take the annuity and have my wife take her pension earlier.

I appreciate that no-one can give financial advice and I'm not looking for this, but in order to help make a decision I was wondering if anyone had experience of retiring and getting an uplift for being a type 1 diabetic. Obviously I could go through the quote system and find out but this will be quite long winded and because I have other options like draw down I'm only really in the planning stage of thinking about my options and looking at a ball park for what I might get in the way of an uplift so I can decide whether it is worth exploring to the quote stage.

I'm type 1 for over 30 years controlled by insulin before meals and a 24 hour background dose at night. No huge health issues beyond this and looking to retire at about 62 (but could be a couple of years later if we use savings first before eating into my pension).

So does anyone have experience, or an opinion, on what sort of annuity uplift I can expect and is there a minimum uplift simply for being type 1? I'm only looking for very round figures like 5%, 10%, 20%, 30% estimates and not basing any decision on the replies just more for whether taking an annuity might be worth exploring further.

(By the way it's Richard but that username was taken!)
Click to expand...
If you really want to maximise maybe start a 30 cigarettes a day habit too?
 
Richart said:
@RBZ5416
Thanks- my 2nd post was written before I saw yours and that's the type of thing i was after (ie 14% without any further health questions that might improve it a bit).
Click to expand...

If it's none index linked though, that 14% would be virtually gone just over the last year alone.
 
RBZ5416 said:
As a rough idea there's a comparison here. Just use random letters for the email address (abc@def.com) & 01234 567890 for the phone number to prevent being hassled by sales people. Just plugging mine in I was surprised at the basic figure as they've always been extremely poor whenever I've looked before. They didn't ask about type of diabetes or meds so that probably has to be refined down the line. Adding diabetes as a condition added 14% for me at 66 using today as the retirement date.

As @travellor says above, this will be non-index linked with no provision for a spouse. So the amount will never go up & if when pass, the annuity is cancelled. Adding provision for either will reduce the amount payable.

Having just started dipping into mine, I'm currently taking uncrystallised lumps sums (UFPLS), carefully calculated to minimise taxation. I have chosen this route as it's completely flexible & doesn't require me to take a lump sum. I have no particular need of a lump sum & it's likely to grow more in the pension pot that anything else I might invest it in, without significant risk.

A good starting point, if you haven't already, is to book a Pension Wise appointment. They won't give you advice but will talk you through all the options.
Click to expand...

I'm taking mine the same way, uncrystalised, but I'm starting to wonder if it's better to crystallise it.
Gives me a tax free lump sum to spend now, or as it's a SIPP I can just invest it in my ISA instead.
When I start drawing my state pension I'll be over my tax allowance anyway, so it makes more sense to grow as much as possible now in a tax free wrapper.
 
I was not diabetic when I took my pensions. I took financial advice, then took part of my pensions to a different provider. After giving my medical history, I was given an uplift for my hypertension and diverticular disease.
 
Felinia said:
I was not diabetic when I took my pensions. I took financial advice, then took part of my pensions to a different provider. After giving my medical history, I was given an uplift for my hypertension and diverticular disease.
Click to expand...
High cholesterol comes with the added bonus as well.
 
Well there's a coincidence. I've been looking at annuities recently after not visiting here for ages.... and this thread is the one that jumps out at me!

I did find this site yesterday.... https://quotes.annuityready.com/?page=form0 that appears to provide quotes from different providers. One thing to be aware of though, it does ask you to fill in health conditions so takes a while, but then the page times out if you leave it overnight. Hence might be worth ensuring you create a login before plugging details in.
 
travellor said:
High cholesterol comes with the added bonus as well.
Click to expand...
The site I used above asked about blood pressure & cholesterol. Blood pressure made no difference & cholesterol was only a tiny uplift.
travellor said:
If it's none index linked though, that 14% would be virtually gone just over the last year alone.
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Indeed.
travellor said:
Gives me a tax free lump sum to spend now
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Obviously horses for courses & if you have the need or desire to make a significant purchase it's worth taking. But otherwise it will just sit in an account of one form or another earning very little while inflation continues to rampage.

Although annuity rates have improved since I last looked, I'd still have to make it to 78 just to get back in payments what I'd given them up front.
 
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RBZ5416 said:
The site I used above asked about blood pressure & cholesterol. Blood pressure made no difference & cholesterol was only a tiny uplift.

Indeed.

Obviously horses for courses & if you have the need or desire to make a significant purchase it's worth taking. But otherwise it will just sit in an account of one form or another earning very little while inflation continues to rampage.

Although annuity rates have improved since I last looked, I'd still have to make it to 78 just to get back in payments what I'd given them up front.
Click to expand...

If I cash in my pot now for an annuity, I can take 25% as tax free cash, and buy a fairly decent rate annuity with the other 75%, as a locked in deal.
If I choose to take it later, I'll be paying tax on whatever I take, from 75% to 100% of it.
Or I can convert it into my SIPP, and draw it down, but still be paying tax on the 75% of it.
I am tempted by the numbers the annuity gives.
 
I had an assortment of final salary type pensions when I retired and then some odds and sods which I'd just supposed I'd cash in and bung that tiddly bit into the current account (only about £1200 ish I think) - but a mate who knew a lot more told me that I could get what was then known as an impaired life annuity, so I did - which has ever since paid out £50 ish extra a month - so here we are 14 years later so far having received FAR more than the total invested. Occasionally I wonder when they'll notice and pull the plug .....
 
trophywench said:
I had an assortment of final salary type pensions when I retired and then some odds and sods which I'd just supposed I'd cash in and bung that tiddly bit into the current account (only about £1200 ish I think) - but a mate who knew a lot more told me that I could get what was then known as an impaired life annuity, so I did - which has ever since paid out £50 ish extra a month - so here we are 14 years later so far having received FAR more than the total invested. Occasionally I wonder when they'll notice and pull the plug .....
Click to expand...
You've beaten the odds and deserve your winnings!
 
trophywench said:
I had an assortment of final salary type pensions when I retired and then some odds and sods which I'd just supposed I'd cash in and bung that tiddly bit into the current account (only about £1200 ish I think) - but a mate who knew a lot more told me that I could get what was then known as an impaired life annuity, so I did - which has ever since paid out £50 ish extra a month - so here we are 14 years later so far having received FAR more than the total invested. Occasionally I wonder when they'll notice and pull the plug .....
Click to expand...
£1200 paying £50 a month is good, but £50 extra is amazing.
 
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