topics this page:   • smoker enhancement • single rates   • annuity rates • joint rates   • 12-month trend 2008

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smoker enhancement
This applies to both a pension and purchased life annuity. There are a number of factors relating to health or lifestyle that mean an individual could benefit from an enhanced annuity, resulting in a significant increase in the pension income or income from a lump sum in retirement. Although these people may be very healthy today, due to these factors their life expectancy is less than that of the norm.

If the annuitant smokes 10 or more cigarettes per day (or 3 ounces of cigarette tobacco per week) and has done so for the past 10 years, they could receive enhanced rates from a life company. Enhanced rates do not apply to annuitants that smoker pipes or cigars. If after being accepted on the enhanced terms the annuitant gives up smoking, the pension income will still continue at that rate for the rest of the annuitant's life.

If the annuitant has suffered ill health in the past that has reduced their life expectancy relative to the mortality tables, then again enhanced rates could be payable. If it is the annuitant's spouse that has suffered ill health, is a smoker or is overweight then whether pension annuities or a purchased life annuities the life companies could pay a higher income based on a joint life annuity.

In addition life companies also consider the lifestyle and location of the annuitant. In particular, it the annuitant has been a manual worker for most of their working life of live in a particular part of the country, an enhanced annuity could be payable. Before qualifying for enhanced terms it is likely that the life company will ask for General Practitioners Report (GPR) from the annuitant's doctor to verify the medical conditions before an enhanced income can be paid.


annuity rates table - smoker
These enhanced rates tables are for smoker annuitants. For other rates try;
standard rates
diabetes rates
impaired rates
immediate needs rates
with profits rates
purchased life rates


SINGLE LIFE - smoker

Fund size: £100,000 (after taking £33,333 tax free cash)

The following pension annuity rates table shows the best open market option income for a compulsory purchase annuity. The original pension fund is £133,333 and after the tax free lump sum has been taken, £100,000 is used to purchase an annuity.

The annuity is paid monthly in arrears and compared on a level annuity, 3% escalation, and level with 10-year guarantee basis for single males and females from the ages of 50 to 74 years. No medical enhancements are included in these rates.

Last updated: 22 April 2008

JOINT LIFE - smoker

Fund size: £100,000 (after taking £33,333 tax free cash)

The following pension annuity rates table shows the best open market option income for a compulsory purchase annuity. The original pension fund is £133,333 and after the tax free lump sum has been taken, £100,000 is used to purchase an annuity.

The annuity is paid monthly in arrears and compared on a level annuity with 50% spouse benefit on death, level with 100% spouse and 3% escalation with 50% spouse basis. No medical enhancements are included in these rates.

Last updated: 22 April 2008

Key - Annuity Rate Changes

Latest rates higher than 12 months ago   Latest rates lower than 12 months ago   £ Difference in pounds sterling (per annum)   % Percentage change from 12 months ago   nc No Change

Smoker - level annuity
male   £ %     50 816 14.4     55 768 12.3     60 708 10.0     65 636 7.6     70 540 5.2     74 420 3.3	female   £ %     50 840 15.3     55 804 13.5     60 768 11.6     65 720 9.5     70 684 7.5     74 624 5.7
Annuity table - the annuity rate changes are based on £100,000 in January 2008 compared to January 2007. For an annuity rate specific to your circumstances you should complete the free annuity quote.

Smoker - level annuity, 50% spouse

£ %     male 50 and female 50 648 15.1     male 55 and female 55 612 13.0     male 60 and female 60 552 10.1     male 65 and female 65 456 6.8     male 70 and female 70 432 6.3     male 74 and female 74 336 5.6

Annuity table - the annuity rate changes are based on £100,000 in January 2008 compared to January 2007. For an annuity rate specific to your circumstances you should complete the free annuity quote.

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