A LIFE assurance company was launched yesterday to tap into the country's growing retired population.

Just Retirement, which has been set up by Mike Fuller, the former head of Britannic Retirement Solutions (BRS), will offer enhanced annuities and equity release schemes to people who have stopped working.

Unlike standard annuities, enhanced annuities take into account any factors affecting someone's life expectancy when they convert their pension fund into a regular retirement income.

Rather than simply assessing people's life expectancy based on pre-determined categories of age and gender, Just Retirement will take into account about 1,000 recognised medical conditions, together with other lifestyle factors, such as whether the person smokes and where they live.

It is estimated that up to 40 per cent of people could benefit from an enhanced annuity, including those who have diabetes, heart conditions, high blood pressure and asthma.

Despite being able to increase pension income by more than 28 per cent, enhanced annuities account for only seven per cent of the total £7.4bn annuity market.

The group will also offer a range of equity release products to help people unlock the money they have tied up in their property.