Higher UK annuity rates are payable for many reasons; your lifestyle, your state of health, and where you live. The thing is, though, it really is up to you; if you don’t mention something relevant, then it can’t be taken into account, which could cost you dearly in terms of lost retirement income. There is a simple reason why higher pension annuity rates are payable. If you consider other financial products, particularly insurance policies, if you smoke or if you’re in poor health you get a worse deal than normal. The opposite is true when it comes to pension annuities.
Smokers and people in poor health can benefit from these higher annuity rates, for the simple reason that their life expectancy is lower than it is for healthy people, so the annuity provider calculates it won’t have to pay out the income for so long. If you smoke, if you have been ill in the past or even if you’re only slightly overweight it is worth checking out what annuity rates might be available tou you. You could end up with an annuity income 20% to 30% higher as a result.
