Annuities Explained Annuities for people with Poor Health

Annuities for People with Poor Health and Smokers


Impaired Annuities

If the state of your health is severely questionable, or if perhaps you are a long-term smoker, it is of crucial importance to realise that both these factors will greatly affect your annuity claim to a rather significant degree. Although this may sound like it will mean bad news, it is actually rather valuable.

Why? The Annuity rate available to you is inversely proportional to your health, which in basic terms means that essentially the unhealthier you are, the better your annuity rate will be! Why, for the first time in financial shopping history, is it actually worth your while to be an unhealthy citizen? Simply because your annuity administrator would not expect you to live for as long as somebody who is a picture of health, and therefore not have to pay you an income for as long.

This is the basis for the title “Impaired”, or a far more fittingly descriptive term: “Enhanced”. A doctor’s report is usually required, as a means of testing that your application form details are correct.

Statistical Facts

  • A staggering percentage of retiring Britons, as much as 40%, qualify for a selection of these benefit enhancements in some shape or form, but due to simply being uninformed of the small-print, they miss out as a result.
  • 1 in 10 decide to choose an impaired benefit.
  • 4 in 10 actually qualify for one, but simply fail to mention it.
  • According to The Association of British Insurers, this translates to 125,000 pensioners missing out on a collective sum of around £250 million in uncollected retirement income between them.
  • A smoker’s annuity payment is boosted by somewhere between 8% and 23%. But don’t start smoking just yet, as there are reports 1,000 separate medical conditions that would qualify a pensioner for an impaired annuity.
  • The Royal Bank of Scotland says retirement income can be increased by as much as 39%, when medical conditions are taken into consideration.

Thinking of Retiring soon? Have a look at our Comparison Table



The message of utmost importance here, is that no matter how small or insignificant you may think your health condition is, always mention them to your pensions administrator to make sure you don’t miss out.

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