Specialist insurer Just Retirement said that health and lifestyle are among the key factors that help decide the level of income that people can buy with their pension pots. But whereas smokers are asked specifically about their habits, non-smokers may not be asked – or may be embarrassed – to give such personal details.
Stephen Lowe, group director of external affairs and customer insight at Just Retirement, said: “When people look into buying a retirement income, one of the first questions they are asked is whether they smoke – it is made easy for smokers.
“Most are happy to disclose their habit and will have an inkling the risks may help them get a higher retirement income from their pension pot. For non- and ex-smokers it is not such a black and white issue and without being asked about specific medical conditions or lifestyle factors they may be reluctant to volunteer information.
“In reality, it would be better if everyone assumed at the start they could qualify because then they would be more likely to ask. A range of health conditions and lifestyle factors have a favourable impact on the level of retirement income, whether that is smoking, weight, drinking, minor illnesses, prescription medicines, etc.
“About one in six people including many smokers secure an enhanced income but our research suggests that where the right questions are asked by trained professionals and the individual is open and honest, up to two-thirds could qualify. That means a huge number of people are missing out on regular income for the rest of their lives.”
Stephen Lowe said that retirees needed to make sure that when converting a pension pot into an income they get an opportunity to fully discuss their health and lifestyle.
He added: “This should not be glossed over or covered in just a few quick questions.
“New methods of gathering data online and by telephone mean that it should only take minutes to capture all the relevant data in enough detail.
“It could be time well spend if the pay-off is thousands of pounds extra income over the course of a long retirement.”
