Meet Andrea

Andrea, 65, is single and lives on her own. She’s a non-smoker, weighs 10 stone and drinks moderately. In January 2013, she had a major stroke that badly affected her left arm and caused major weakness. She has recovered from her stroke, but it’s left her needing a little help with the usual daily living activities.

Aside from this, Andrea is in good health and plans to stay that way. Consequently, she’s still optimistic about enjoying retirement. She’d like an income for life, but has heard that annuities aren’t very good value. Andrea discussed this with her adviser who explained that it all depends how you define value. If you place a value on knowing that, however long you live, you can be certain of a regular income, then annuities are good value. If you define value by the investment return you can earn on your money, then there are potentially better solutions available.

However, Andrea’s adviser went further than this and explained that she could buy an annuity that would pay her an extra 25% more than a standard annuity because of her stroke.

This means Andrea can enjoy the best of both worlds. The peace of mind that comes from knowing she has a guaranteed income for life and the satisfaction of knowing that, if she does enjoy a long retirement, the amount she will receive is likely to compare favourably with the investment returns she could have achieved elsewhere.