Honesty really is the best policy for bigger pension

PEOPLE about to access their pensions are being told they could be better off in retirement if they are honest about their health.

New rules from the Financial Conduct Authority force providers to ask health and lifestyle questions to those turning savings pots into guaranteed income with an annuity.

It means people with medical conditions, smokers or heavier drinkers may be entitled to higher regular payments.

Stephen Lowe, of retirement

CHOICE Pension advice specialist Just Group, said: “People seeking secure retirement income should be prepared to answer questions about their health or it could be costly. This is not the time to be shy or embarrassed but to talk about your medical history, state of health, details about your weight and lifestyle.”

The FCA has found up to 48% of savers who bought an annuity may have been eligible for more income – called an enhanced annuity – due to health issues.

Experts are urging people to shop around for the best deal.

Andrew Tully, of insurance giant Canada Life, said: “A good rule of thumb is never accept the offer from your pension company, shop around the open market. You can increase your income by 10% on average.“

SHE gave birth to her fourth child nearly five months ago, and was quickly back at work. So model Abbey Clancy, 33, surely deserves a break as she enjoys the sun in Dubai with her former England footballer husband Peter Crouch, 38. The couple were joined by their brood – Sophia, nine, Liberty, four, Johnny, aged one, and recent arrival Jack.