Regular smokers can normally obtain special smoker annuity rates, based on their reduced life expectancy.  This can add up to 20% to your pension annuity, compared with standard annuity rates.  Even light smokers can benefit with some providers. 

This is because Annuity Rates are based on the guaranteed return the provider can obtain, and the life expectancy of the annuitant, and it is well established that smoking is a factor that can reduce life expectancy.

Therefore it is important to mention your smoker status when discussing your Annuity Options with an adviser.

Similarly any health conditions, such as diabetes, high blood pressure, being overweight etc may also qualify you for an Enhanced Annuity. Although it is usually necessary to complete a medical questionnaire to establish whether any enhancement is available, the effort can be well worthwhile.

Smoker annuities and enhanced annuities offer all the usual options such as single or joint life, guarantee periods, escalation etc, so it is important to obtain specialist advice before making a decision regarding your retirement annuity. Similarly you can select either a Fixed Annuity, which will remain at the same level, and therefore lose its value over time due to inflation, or an Indexed Annuity, which will maintain its purchasing power by rising in line with the Retail Prices Index (RPI). Alternatively the annuity can be arranged to increase by a fixed percentage selected at outset.

Remember that, unlike most investment vehicles, you can't change an annuity once it has been set up, so you have to live with whatever decision you make for the rest of your life. It is therefore important to obtain specialist advice before arranging your annuity.

Call  0845 123 5590  or  01325 487192