Impaired Life Annuities Sales Increase by 40%

According to a research carried out by Towers Watson, sales of enhanced annuities rose by more than 40% in the first half of this year. They reached £1.26 billion in January through June because a large number of Brits attempted to increase their pension income. The overall sales in the first quarter of the year reached £582 million and were surpassed by sales of £676 million in the second quarter of this year.

Let us remind that enhanced annuities, which are also referred to as impaired life annuity, pay more to those holders who are in certain medical conditions because they are not expected to live as long as others. This means that smokers, overweight people and those with heart problems will receive more money than healthy people.

At the moment, impaired life annuities account for more than 30% of all annuities sold in the UK.
However, the growing popularity of these annuities, which was confirmed by the Towers Watson report, might lead to a decrease in the annuity rates for people who are not eligible for enhanced annuities.