I’ve been doing a great deal of work on this subject lately, details of which will be on this website shortly, about the range of annuity rates that might be available to you.
First, you have to understand the ‘camps’ they fall into, which actually makes it easier when you start looking for annuity quotes. We have standard annuity rates for those retirees who are considered healthy and of average height and weight. In addition we have enhanced annuity rates for those with medical conditions or for those taking regular medication.
On top of these we also have impaired life annuity rates for those with serious medical conditions, and a much shorter life expectancy as a result. And then we have rates for smokers. Yes, enhanced annuity rates do apply to individuals classed as regular smokers.
Treing to put these into some form of order, or ranking isn’t easy, but it’s fair to say that standard annuity rates are probably the lowest, but even then there can be differences of around 30% between the best and the worst. Next come smokers, who probably get 10-12% more than standard rates.
After this we have enhanced annuity rates, and this is where it gets difficult. These rates vary enormously depending on the severity of the medical condition (mild or more serious), and the type of medication being taken. Lastly, the highest rates are likely to be payable to an individual with a serious life threatening medical condition, and therefore qualifying for an impaired life annuity.
Confusing? Possibly. That’s why it’s best to take specialist advice when looking to source your annuity quotes. Getting the choice wrong can be a costly mistake.
