Ill health annuity mis-selling

Were you a victim?

Expert help and support from Greg Vaughan Financial Services: the pensions claims specialist

Ill health annuity mis-selling

What is an annuity? An annuity is just another word for a pension. When you reach retirement your personal pension provider will turn your retirement fund into a regular pension income. The amount you will receive each month will depend upon how old you are, your health, whether you want to make provision for your spouse etc.

People with health issues (see below) can qualify for higher pensions because insurers acknowledge a shortened life will mean they will be paying the pension for fewer years than normal. So, they are able to pay more than for someone in good health. Depending upon your health issue, your pension could be up to 60% higher than standard.

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How were pension annuities mis-sold?

If you had health issues when you retired, your pension provider should have checked this with you to make sure you qualified for a higher pension. However, this only happened in a relatively small number of cases. Most insurers just set up the pension on the standard basis. This means much greater profit for them because, on average, they will be paying a standard rate pension for less years than they normally would. It is estimated that 8 out of 10 people that took their pension from the same insurance company that ran their pension plan will have got a bad deal if in ill health.

Who qualifies for an enhanced pension?

You will probably have been entitled to a higher pension if you had one or more of the following conditions:

  • You were a smoker
  • Diabetic
  • High blood pressure
  • Cancer
  • Heart disease
  • Kidney or other major organ failure
  • Asthma
  • Rheumatoid arthritis
  • High cholesterol
  • Obesity

Think you have been mis-sold?

How do I know if I was mis-sold a pension annuity? If you had health concerns at the time of retirement you should have qualified for a higher pension.

If you didn’t shop around for the best deal yourself, mis-selling may have occurred if your pension provider set up your annuity without doing the following:

  • You should have been asked about your health when your pension annuity was set up.
  • You should have been told which medical conditions qualified for a higher pension.
  • You should have been told that there was a marketplace for annuities and you would do better to shop around for the best deal.
  • You should have been told if your pension provider did not offer enhanced annuities, but other insurers did.

What can I do about it if I think I was mis-sold?

Contact Greg Vaughan now for a free, no obligation, assessment of your case by using the form to the left or calling 0151 329 0775. If you were the victim of mis-selling then you will be entitled to a higher pension going forward, plus you will receive a lump sum for the past higher pension payments you missed out on. Your doctor will most likely need to provide medical evidence to back up your claim.