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