Smoker Annuities
Smoker Annuities
Smoker annuities are annuities which give preferential rates to smokers, based on their perceived lower life expectancy.
Unlike life insurance where smokers are actively penalised for their choices, annuities are one occasion when smokers actually benefit from preferential rates, thereby providing them with potentially higher annuity income than the equivalent non-smoker.
Annuity rates generally are calculated taking into account gilt yields (which rise and fall broadly in line with interest rates), your age, your sex and perceived life expectancy and also the type of annuity being purchased. However, enhanced and impaired life annuities such as smoker annuities will also take certain lifestyle choices into account if this is likely to result in lower life expectancy. This means that higher annuity rates are available, resulting in a higher annuity income, albeit payable for potentially a shorter period of time.
It is important that when considering purchasing an annuity, you speak to a suitably qualified and impartial adviser who is able to take you through the whole range of options, including whether you qualify for smoker annuities rates.
For more information on annuities read our Guide to Annuities
When seeking advice on choosing the right annuity option, it is important to ensure that advice is independent, as many companies, banks and building societies can only advise on their own products and not those of their competitors.
We work with Eden Personal Financial Planning, a national firm of pension and annuity specialist who offer retirement annuity advice.
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