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Annuity RatesWhether you’re fit and healthy, suffering from poor health, overweight or a smoker, we’ll find you a higher annuity income for your retirement.
Annuity OptionsYou can add various options to your annuity to tie in with your personal circumstances. Click here for details of the options that might apply to you.
Annuity TypesIt’s important that you select the right type of annuity for your requirements. Click here for details of the various annuities available.
Smoker Annuity Rates
Up to 30% more retirement income if you’re a regular smoker
Smoker annuity rates apply if you smoke 10 or more cigarettes per day (or 3 ounces of cigarette tobacco per week) and have done so for the past 10 years. The more you smoke, the higher the annuity rates.
The annuity quote offered by your current pension company won’t take into account your smoking habits and you could be significantly better off buying your annuity from us.
Click on the annuity calculator to obtain a free personalised annuity quote.
Depending on how much you smoke you could get substantially more than the figure shown.
To illustrate just how much extra income you could benefit from, see the following example quotes.
As many people who smoke when they come to retire suffer from ill health, there are also some case study examples showing the higher incomes available for smokers suffering from certain medical conditions. The more serious the medical condition(s) the higher the annuity rates.
The incomes shown are on a level basis, monthly, no guarantee period.
Annuity quotes for smokers aged 60
| Male age 60 | Female age 60 | |||
| Pension fund | Smoker | Non-smoker | Smoker | Non-smoker |
| £25000 | £148 | £127 | £139 | £119 |
| £50000 | £297 | £254 | £283 | £239 |
| £75000 | £444 | £380 | £421 | £356 |
| £100000 | £590 | £506 | £560 | £475 |
Annuity quotes for smokers aged 65
| Male age 65 | Female age 65 | |||
| Pension fund | Smoker | Non-smoker | Smoker | Non-smoker |
| £25000 | £168 | £139 | £160 | £132 |
| £50000 | £341 | £279 | £325 | £265 |
| £75000 | £508 | £416 | £484 | £393 |
| £100000 | £674 | £555 | £635 | £525 |
Annuity quotes for smokers aged 70
| Male age 70 | Female age 70 | |||
| Pension fund | Smoker | Non-smoker | Smoker | Non-smoker |
| £25000 | £196 | £156 | £189 | £146 |
| £50000 | £396 | £313 | £384 | £292 |
| £75000 | £595 | £470 | £569 | £435 |
| £100000 | £790 | £628 | £745 | £582 |
Annuity quotes for joint life annuities, both smokers, with 50% spouse’s pension
| Male 65, Female 63 | Male, 70, Female 68 | |||
| Pension fund | Smoker | Non-smoker | Smoker | Non-smoker |
| £25000 | £141 | £127 | £162 | £140 |
| £50000 | £290 | £254 | £331 | £281 |
| £75000 | £437 | £382 | £498 | £356 |
| £100000 | £582 | £509 | £663 | £418 |
Case studies for 65 year old smokers with various medical conditions; £50,000 fund
| Male | Female | |||||
| Medical condition | Standard quote | Enhanced quote | Percentage difference | Standard quote | Enhanced quote | Percentage difference |
| Smoker with lung cancer which has spread to the bones. Has had radiotherapy. Having chemo. | £279 | £751 | 169% more | £265 | £706 | 166% more |
| Smoker, taking two medications for blood pressure and a statin to control cholesterol. | £279 | £333 | 19% more | £265 | £315 | 19% more |
| Smoker with diabetes. Taking tablets for blood pressure, cholesterol, and diabetes. Recent stroke. | £279 | £359 | 28% more | £265 | £338 | 28% more |
Your medical condition(s) might not be shown, but you can get a good idea of the higher rates available.
There are over 1,500 medical conditions that can be considered. Examples: Alzheimer’s, angina, arthritis, asthma, blood pressure, various cancers, COPD, cholesterol, DVT, diabetes, heart attack or stroke, heart disease, kidney complaints, leukemia, liver complaints, organ transplants, Parkinson’s, and rheumatism. See ill health for further details.
Additional information
The average increase in annuity income from smoker annuity rates compared to standard rates is around 22%.
Annuity rates 50% higher aren’t uncommon for smokers with more serious medical conditions.
These annuity rates were obtained from MGM Advantage and from the FSA’s annuity tables, July, 2010.
You can choose the following options for your annuity
An annuity with a 3% per year increasing income. Income will start at a lower level but will go up 3% each year.
An annuity that increases by RPI each year. This will combat inflation, but the income will start at a much lower level.
A guarantee period. The annuity income will be paid for the selected time period, even if you die before then.
A joint life annuity. This will pay a proportion of your annuity income to your spouse or partner should you die early.
If the above income options are of interest, you can see example costings on the standard annuity rates page.
