In this Stranded on Standard edition of Just in Touch we look at various considerations that will help you to ensure your clients are not left stranded on a lower, standard, non-enhanced annuity rate. We review issues surrounding annuities, including: the pros and cons of deferring an annuity in the current economic climate; how the Common Quotation Form can reveal much more about your client's health than a simplified fact find; and how a Fixed Term Annuity may be a suitable option for healthy retirees. And, as the leading provider of enhanced annuities we want to help you help more of your clients, that's why we accept fund sizes from £5,000 to £500,000.
We will also look at the potential role of equity release in filling the gap left by pension contribution shortfalls.
To help us continue to deliver our highly regarded provider events programme, please complete our brief survey. As a thank you, we will enter you in a draw to win a bottle of Bollinger Cuvee.
We hope you enjoy this edition of just in touch and welcome your feedback so please get in touch.
Deferring an annuity - when is it worth the gamble?
Some of your clients may be considering delaying their purchase of an annuity. The volatile nature of markets and pension fund performance are just two factors that may make deferring seem an attractive option.
So is now the right time for your client to defer or purchase an annuity?
As you know, there are numerous factors that need to be taken into account in deciding if now is the right time for your client to defer an annuity.
But one area that may be overlooked is their health status.
If they currently qualify for an enhanced annuity, there are additional considerations to take into account that may not be immediately obvious – what are the implications if their health improves? What if it deteriorates?
If they do not currently qualify for an enhanced annuity, then you may want to look at the new Just Retirement Fixed Term Annuity – which (when selected at outset) includes the UK’s first conversion feature enabling conversion to an enhanced annuity or access to their Open Market Option (OMO) should their health deteriorate at any time during the fixed term.
Next steps
This, plus wider issues and options to consider are looked at it more detail - please click here
Alternatively, please call IFA Sales support on 0845 302 2287 or email IFASupport@justretirement.com
expand/hide
Help rescue a client and you could win
For retirees caught in the current storm of financial uncertainty the secure and additional income of an enhanced annuity provides a safe haven for life. That’s why considering all of their options, particularly their health, is crucial to getting them the best deal for their circumstances.
Health is key
If they qualify for an enhanced annuity it can boost their retirement income by around 40%* over a standard annuity rate, sometimes even more, and our research suggests that up to 6-in-10 retirees could qualify.
Rescue your clients and you could win a respite from the storm worth £1,000
For every Enhanced Annuity and Fixed Term Annuity quote you request from us between 17th October and 30th November 2011, you will be entered into a prize draw to win Love to Shop vouchers worth £1,000 to spend on whatever you wish.
There is no limit on the number of entries per person to the prize draw. To find out more, and for full terms and conditions, click here
* Male aged 65, 45k fund, 5 years guaranteed, no escalation, no value protection, based on RH2 7RU postcode, compared to the lowest standard annuity rate offered via Avelo Exchange on 16.09.11
expand/hide
Revealing...Using the CQF can uncover more retirement income for your client
As the leading provider of enhanced annuities, Just Retirement estimate that 60% of people might qualify for an enhanced annuity, which means the majority of your clients could too. Along with more well known lifestyle factors such as smoking and more familiar medical conditions such as diabetes, there are many conditions that could lead to an enhanced annuity, but may only be brought to light with the use of the Common Quotation Form (CQF).
For example, if your client has been diagnosed with long-term asthma, they might receive 10%* more income per year over a standard annuity. With a combination of conditions this rate could be even better, giving them the benefit of extra income for the rest of their lives. This is why it’s important to capture your client’s full medical history, including current medication, to ensure their best retirement income possible.
The Common Quotation form
The CQF simplifies and speeds up the process of collecting your client’s full medical history and can typically be completed in around 15 minutes. Unearthing one qualifying condition may lead to the discovery of others which could play a significant part in creating valuable additional retirement income and security.
Signs that may not be so apparent…
Below are examples designed to highlight the impact using the CQF could have. They are potential indications of underlying conditions that alone or in combination could qualify your client for an enhanced annuity, providing them with extra income for the rest of their life.
A broken arm? On its own, it may not seem significant in determining a client’s retirement income, however frequent broken bones could be a sign of osteoporosis, a condition affecting at least 50% of people by the age of 75. Osteoporosis could mean that your client might benefit from an enhanced annuity.
Painful joints? As clients get older, they may expect to suffer from painful joints. However, if it’s as a result of rheumatoid arthritis, a condition that affects more than 350,000 people in the UK, it may surprise you to learn that it could be an indication that your client could qualify for an enhanced annuity.
Repeat Prescription? Minor ailments and lifestyle factors such as high cholesterol and high blood pressure are commonly treated with prescription medication. And many of these conditions may qualify your clients for an enhanced annuity.
Leg cramps, high BMI and persistent heartburn could all be signs of additional conditions. Only with a fully underwritten annuity quote that takes into account medical and lifestyle conditions can you be confident that the advice you give will be appropriate to a client’s individual circumstances.
Whatever you think your client’s level of health is, the only foolproof way to check if they qualify for an enhanced annuity is to use the Common Quotation Form.
Everyone deserves a just retirement
Make sure your clients also benefit from your expertise. Download the CQF from http://www.commonquotation.co.uk/ or for a range of tools, guides and information to support you in client reviews, visit the Tools section of justadviser.com or call your dedicated account manager on 0845 302 2287.
* Male aged 65, 45k fund, 5 years guaranteed, no escalation, no value protection, based on RH2 7RU postcode, compared to the lowest standard annuity rate offered via Avelo Exchange on 16.06.11
expand/hide
Enhanced annuities considered for funds from £5k to £500k
From fund sizes of £5,000+, with Just Retirement Limited you could help more of your clients.
As the number one enhanced annuity provider**, we know that the additional income from an enhanced annuity can make a big difference to a wide variety of your clients. The efficiencies that come from being the market leader mean that here at Just Retirement, as well as offering market leading rates, we can help you help more of your clients, as we accept clients with fund sizes from £5,000 to £500,000*.
We recognise that obtaining a fair remuneration on smaller fund sizes can sometimes be a challenge, so we offer flexible commission terms, that you can agree with your client. This facility may prove helpful in the run up to RDR and the move to adviser charging.
How we can help you to help your clients:
- Fully underwritten enhanced annuities are available for funds from as little as £5,000.
- An enhanced annuity could lead to additional income for your client of around 10% more for a mild medical or lifestyle condition over a standard annuity, around 40% for a severe condition or even more for specific conditions***.
- The CQF typically takes around 15 minutes to complete, and is accepted by all the major providers of enhanced annuities.
- Simplified annuity processes may not capture all of a client’s conditions, or reflect their true severity, meaning your clients could miss out, and perhaps not even qualifying at all.
- Flexible commission options mean that you can decide with your client the fairest way to calculate your remuneration, whatever their fund size.
For a quote or to find out more, contact us:
Call: 0845 302 2287
Email: ifasupport@justretirement.com
Visit: justadviser.com
* Funds over £500,000 are subject to prior agreement
** By market share, 2010
*** This illustration is based on a male aged 65, with a £45k fund, 5 years guaranteed, no escalation, and no value protection, based on RH2 7RU postcode, compared to the lowest standard annuity rate on Avelo Exchange on 16.09.11.
expand/hide
Your clients don't have to be stranded on standard
The UK’s first convertible Fixed Term Annuity
Up to 60% of retirees could qualify for an enhanced annuity rate1. But what about the rest?
They run the risk of being stranded on lower, standard annuity rates – or facing uncomfortable investment risk with alternative drawdown products.
So we’ve introduced a new Fixed Term Annuity, a capped drawdown product, that has an innovative conversion feature. When included2, it can allow your clients to convert to a Just Retirement enhanced annuity or access the Open Market Option (OMO) should their health deteriorate during that fixed term. If they qualify, it could boost their retirement income by around 40%3 (sometimes even more).
Fixed term annuities offer clients choice and flexibility in retirement, ideal for those who are healthy today but want to keep their options open in case things change. And including our conversion feature gives your clients additional peace of mind.
Rescue your healthy annuity clients from being ‘stranded on standard’. Visit our dedicated SOS pages today, or call us on 0845 302 2287 for more information on the benefits and risks, an illustration or to request a literature pack.
1. Source: Just Retirement research, 2010.
2. The Enhanced Annuity Conversion Feature is included with Plan Protection, one of the benefit option available at outset. Plan Protection is automatically included with any Protected Rights element of a client’s Plan.
3. Based on a male aged 65, with a £45k fund, 5 year guarantee, no escalation, no value protection, based on RH2 7RU postcode, compared to the lowest standard annuity rate offered via Avelo Exchange on 16.09.2011.
expand/hide
Could equity release fill the gap left by pension contribution shortfalls
Could equity release fill the gap left by pension contribution shortfalls?
With a report this summer highlighting that 41% of over 50 year olds are not making adequate pension contributions, it’s increasingly likely that as they approach retirement they will face their golden years with less income than they might have otherwise expected or hoped for.
So as well as looking at their savings and contributions, how could those affected by lower than anticipated pension funds start to plan for this potential shortfall?
There are suggestions and actions underway to help encourage individuals to save, helping to mitigate this shortfall. For example, promoting the take up of company pension schemes where available; and the introduction of auto-enrolment and the National Employment Savings Trust (NEST).
However, for those closer to retirement age there may not be enough time to save a sufficient additional amount to fill the gap.
In 2007-8, 72% of pensioners owned their homes outright, and for many people, this may represent their biggest asset. It also means that equity release could be a possible solution for the increasing number of clients in or at retirement who are likely to find themselves in a battle against the rising cost of living.
Just Retirement is committed to helping you help your clients achieve the retirement they deserve and would like to help ensure that you and your clients are fully benefiting from the opportunities that equity release can bring.
The Just Retirement Roll-Up Lifetime Mortgage continues to provide great value on equity release by offering the following:
- Attractive loan-to-value factors from 20% to 45%, dependent on a clients age
- Flexible drawdown facility – minimum initial advance of £10,000 followed by subsequent drawdown advances of only £2,000 with no time limits on future drawdown’s
- Commission on each cash advance with a minimum of £600 payable on the first advance*
For more information on our products or for a quotation from our award winning team, please contact Just Retirement IFA support on 0845 302 2287 (lines are open Monday to Friday, 8:30am to 5:30pm), fax us on 0845 301 2287, or email us at ifasupport@justretirement.com.
*Commission on drawdown(s) is only payable once the overall advance(s) taken exceeds £30,000 and on the prevailing commission rate at the time of each advance.
expand/hide
Keeping you up-to-date on all the latest issues affecting the retirement industry is an important part of our business. Our highly regarded Events Programme runs throughout the year and we aim to reach as many of you as possible by holding our workshops and seminars across the UK.
In order to ensure that our events are meeting all of your needs and expectations we have created a brief survey. If you can, please spare 5 minutes and complete the survey, giving us any comments or feedback you would like to share with us. As a little thank you, we will enter all those who complete the survey into a prize draw to win a bottle of Bollinger Cuvee. To participate in the survey please click here.
To view the terms and conditions, please click here.
November 2011 Regional Seminars
This November sees Just Retirement presenting our third round of Regional Seminars for 2011. We will be travelling to 12 locations around the UK to meet with advisers and to present our new Search and Rescue seminar. We will discuss the need for a robust ‘discovery’ process for retirees as well as when annuities may be the right solution, including an overview of our recently launched Fixed Term Annuity.
Our half day seminar will be followed after lunch by a Gap Fill session, earning you valuable CPD as well as a great opportunity to fill some gaps in your Pension & Retirement Planning qualifications. It is also a great chance for you to network with other local advisers and to meet with a representative from Just Retirement.
Please visit our Events page on justadviser.com for more information on these events including dates and locations and to register.
expand/hide