09 March 2010
According to latest research by Towers Watson, sales of enhanced
annuities in the UK increased by 24 per cent last year.
Towers Watson said the market share of enhanced annuity sales,
as a percentage of total annuity sales, had more than doubled since
2001 - from £419.6m, a 7.8 per cent market share, in 2001 to
£1.79bn, a 16.9 per cent, last year.
However, senior consultant Andy Sanders warned a successful
enhanced annuity market does have implications. Mr Sanders said:
"For those lives that do not qualify for an enhancement, average
expectations of life will continue to lengthen which needs to be
reflected in lower levels of pension income offered."
Towers Watson said consumer interest in taking out enhanced
annuities - which provide bigger pensions for those with serious
medical conditions or with negative lifestyle factors such as
weight, smoking and occupation - is set to continue.
