Smoker annuity rates could be the best UK annuity rates for you if you’re a regular smoker. When you decide to purchase your important retirement income you take your pension fund (probably after tax free cash) and approach an insurance company to buy a pension annuity. Be careful, though, you do not need to buy your pension annuity from the same pension company who has managed your pension savings and you can instead go to the open market to find the best annuity rates and transfer your pension to a new annuity provider, known as taking your open market option (OMO).
However, if you are a regular smoker you can opt for smoker annuity rates. The criteria for this is that you smoke 10 cigarettes or more each day and you have regularly smoked for at least the last 10 years. Please check the annuity providers definition as criteria can vary. You may think its not worth moving your hard earned pension fund but on average you might actually get rates around 20% than non-smoker annuity rates. In the first instance you should approach your existing pension provider and ask if they provide smoker annuity rates. Using the services of a specialist annuity adviser is a good idea as smokers annuities are a little bit more complex than standard annuities, and more information is required. You will need to go through a medical questionnaire and the insurer may contact your doctor to check your smokers status.
