Smoker annuity rates and female annuity rates are important considerations. If you’re a smoker, annuity providers factor in to their annuity rates that you are likely to pass away sooner than the average individual who doesn’t smoke. They therefore assume that they’ll not be paying you your annuity income for as long. A presumed shorter lifespan means that being a regular smoker can increase the amount of regular income you receive from your annuity. In addition, higher annuity rates are sometimes given to individuals who have retired from certain occupations or to individuals who live in certain parts of the country, based on postcode (via postcode annuities, which tend to benefit those living in ‘poorer’ areas). As a smoker, you may be entitled to receive a higher annuity income, perhaps up to 30% above standard level annuity rates.
Female annuity rates? 1000′s of women retire each week, but did you know that when they buy their annuity, in general, they receive a lesser income from their annuity than men? They are being penalised because of their biological difference to men. Insurance companies say that income from pension annuities for females are lower due to them having a longer life expectancy. Individual’s annuity income depends on the insurance company’s estimation of how long they’ll live. The same sized pension fund has to last longer, so it’s spread more thinly over a greater number of years.
