How health affects retirement income
When it comes to paying out a retirement annuity there are many factors that have to be taken into consideration. One of the most important factors is the health of the person in question, and how long the payment may have to be made. For people who are healthier in general the pay-out will be lower as it will have to be paid over an additional number of years compared to someone who may be a little less healthy and may not have to receive a pension pay out for the same amount of time.
The importance of health in pension pay-outs highlights the need for each individual to really consider which the best choice is for them – in their present position. Each annuity plan is tailored to suit an individual so it is worth shopping around before you consider making a purchase.
What health test may I have to undergo?
When it comes to taking out a retirement plan you will more than likely be asked to answer some detailed medical questions to determine your current health status which will then allow the pension company to make a decision about your proposed income. This questionnaire will usually entail going through your medical history, any surgery or illnesses that you may have had into account any medication you take and any other important information.
What would make my income go down?
The results of your medical questionnaire could have a direct impact on the amount of money that you receive throughout your retirement income. If you are seen to be completely healthy with a standard lifespan left then chances are that your retirement income will be at the standard level only as it is believed that you will live longer and therefore the payments will need to be made over a longer period of time.
What would make my income go up?
In contrast, if you have any pre-existing medical conditions or poor lifestyle choices such as excessive drinking, smoking or even having a particular postcode then your payments could go up, as it is believed that the payments may not need to be made for as long as those to a healthy individual.