Sick retirees are finally starting to get fair pension payout offers from big insurance companies.
Savers who are ill or smoke qualify for up to 40 per cent extra income from their pension each year in retirement, as the pot has to stretch over a shorter life expectancy.
However, until recently many big insurers failed to offer these better rates — the onus was on savers to leave for another provider.
Now companies such as Standard Life and Phoenix Life are catering for people in poor health by linking up with rival firms.
Phoenix has recently signed a deal with specialist provider Just Retirement so it can offer a full range of annuities, which turn a pension pot into a retirement income.
More... What you need to know about annuities and how to make the most of your pension pot Could equity release be right for you? Check our free guide Retiring soon? Get an annuity quoteInstead of getting £5,000 a year from a £100,000 fund at age 65, sick retirees will be passed to Just Retirement to get as much as £7,000 on a so-called enhanced annuity.
Standard Life has a similar link with annuity firm Partnership. Aviva, Legal & General and Prudential offer their own ill-health pension payouts.