The recent economic crisis has brought quite sharply into focus where we keep our money, and what people are doing with it. It seems that we can not be sure if we will get a state pension in twenty years from now, and that at the same time, some companies with private pension schemes cannot be trusted. The question then, is what to do?
One option is to take out an annual annuity scheme. This is a way of saving money that can be repaid to you on a yearly basis when you reach retirement age. In the past, some people were put off by this because they may have had existing health conditions, and companies offering them may not have been interested in their custom. Times have changed though!
Now, there are many enhanced annuities on offer, which mean that should you be a smoker or have a health condition, that a company will actually pay you MORE than if you were a non-smoker with no conditions at all. Sounds crazy, doesn't it?!
Well, when you think about it, it actually makes some sense. Smokers statistically speaking have shorter lives than non-smokers. Therefore, what these companies are doing is taking the calculated risk that many of the smokers who take out an enhanced annuity may not live long enough to see it through!
As with any financial investment, it is important to seek independent advice before committing any funds. However, if you are looking for a supplement to a pension scheme and have an existing health problem, or are a smoker, then this could be for you.
