Enhanced annuity rates for smokers are well worth getting. When it comes to retirement, smokers are usually worse off because of the extra cash they spend on their habit, and many find it difficult to get the best annuity rates for their retirement income. Annuities are a way to convert a hard earned pension fund into an ongoing income stream that is payable for the rest of the retirees life. There are various annuity plans and annuity options, and in the past the best annuity rates have always been in favour of those people with larger pension funds and healthier life styles.
However, in more recent times things have changed and we now have higher, or enhanced annuity rates for those that are in poor health, smoke regularly or suffer from a physical condition such as being obese. Smokers annuity rates are designed specifically for those who find it difficult to kick the smoking habit and usually only require a General Practitioners Report (GPR) to support the condition of their health. Mind you, to qualify, you probably have to smoke at least ten cigarettes per day, and have done so for the past ten years.
On average enhanced annuity rates can pay as much as 22% more than standard annuity rates. Rates are based on life expectancy and because people who suffer from poor health or smoke have a reduced life expectancy, it means that the annuity income is not spread over as many years and therefore the income can be greater. Experts have suggested that retirees carefully consider the type of annuity they take out as they may miss out on certain benefits if they do not take an annuity that closely matches their personal circumstances.
