Partnership, a specialist annuity provider, with an emphasis on enhanced annuities and impaired life annuities has recently launched a smokers rate for purchased life annuities. Currently it pays an average of 6.5 per cent a year for 60 – 65 year olds who have smoked a minimum of 10 cigarettes a day for at least 10 years. The rate for older ages could be significantly more.
This new product has been launched to meet a demand from advisers and clients.
Unlike the current smokers’ annuity product, which can only be bought with the proceeds of an authorised pension scheme, the purchased life annuity is available to anyone with a lump sum to invest for income.
Products like this that guarantee income are more appropriate than ever in a world of volatile investment markets. Once purchased the amount payable is guaranteed. Not a bad thing considering the fact that interest rates will probably start falling meaning that returns elsewhere may not be so good.
This could be worth considering if you want a decent income from your lump sum and you are a regular smoker.
