Thousands of people are missing out on extra income because IFAs are not asking health questions, says GE Life.
The annuity provider believes many intermediaries are unaware their clients could qualify for an enhanced annuity because the they are not asking clients questions about qualifying conditions.
The firm says people may not mention their conditions to intermediaries, who sell eight out of 10 annuities, because they do not think they are relevant.
Research carried out for GE Life shows that 40 per cent of people retiring could qualify for a higher income with an enhanced annuity but only 15 per cent of annuities written last year contained any health or lifestyle enhancement.
GE Life is recommending that IFAs should add fact-find questions which could result in up to an extra 100,000 people a year getting an enhanced annuity with up to 20 per cent more income.
GE Life chief executive Scott Dolfi says: “A person may have diabetes or be a smoker but the IFA is unaware of this fact simply because the client did not think it was worth mentioning or the adviser did not ask. IFAs need to encourage clients to disclose health defects to get a better annuity rate. A medical condition could contribute to increased income in retirement, which is then payable for the rest of the annuitant's life.”