The common conditions that could transform your retirement income

There are very few times in life when you consider your high blood pressure, obesity, diabetes or high cholesterol as an asset. However, when you retire, these common conditions could be worth thousands of pounds to you every year.

Nobody wants to make light of these conditions, which many people will have been struggling with for years. However, it is worth being aware that if you choose to buy an annuity in retirement, by disclosing these health issues to the insurance company, you will end up with a significantly higher income.

How much?

This is because when they are working out how much to pay you each year in return for your lump sum, the annuity company will consider how long they expect you to live - and therefore how long they will need to make payments for. Statistically people with these conditions tend to live shorter lives, so the insurance company will pay out more each year.

The difference is striking. Annuity specialists Partnership have estimated the impact of various common conditions on your annuity payment. They assumed that you have a pension pot of £100,000 and you want to buy a single-life level term annuity.

An average healthy person would get £5,400 a year. However, if you are a smoker you stand to get £6,448 a year (£1,048 more a year); if you have ever had a heart attack you could receive £950 more a year and if you suffer from diabetes you could get £638 more a year.

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What's more, some of the conditions that can earn you a higher income are incredibly common, and relatively mild. The most common is high blood pressure, which will earn you an extra £309, while obesity will make you £267 more a year, high cholesterol will earn you £499 more a year and angina £590 extra.

Why?

It seems strange that many of these conditions can earn you a higher payout when some are relatively minor, and many can be treated with medication, but insurers aren't really interested in your personal chances of living a long and happy life - they are only worried about averages. It means if you have one of these conditions, and are looking after yourself, you could stand to get this enhanced income for many decades in retirement.

Partnership adds that around 65% of people have a condition that could entitle them to an enhanced annuity, so if you are considering an annuity as part of your retirement income, it's well worth checking to see if you have any conditions that could boost your income - and shopping around to ensure you get the best deal possible.

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