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  Smoker Annuities   "Expect higher rates if you have smoked for the past 10 years"

If you have been smoking ten or more cigarettes a day for the past 10 years, providers offer enhanced rates of up to 30% more than the standard level annuity rates. The older you are the higher the enhancement with the highest rates of 30-40% extra being paid to people in their 70's where annuity escalation is added.
 About smoker annuities   Annuity rates   12-month trend 2012

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About smoker annuities
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 can 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.

The follwowing table shows the smoker enhancement over the standard annuity rates. The enhancement increase with the age of the annuitant and for level rates can be as high as 25% for males and 31% for females at 75 years of age. Where escalation is included the extra annuity income can be as high as 31% for males and 40% for females at 75 years of age.

Level annuity enhancement
Male Female Joint
55 9% 8% 4%
65 17% 18% 7%
75 25% 31% 14%
3% escalation annuity enhancement
Age Male Female Joint
55 15% 16% 6%
65 24% 26% 9%
75 31% 40% 16%
Annuity table - the annuity enhancements shown above are based on a purchase price of £100,000 and should be used as a guide only. For annuities specific to your circumstances you should complete the free annuity quote.

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, enhanced annuities 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.

At retirement the individual can use a pension fund to buy an annuity and has the option to use an open market option to search for the highest pension annuity. Once you have purchased an annuity it cannot be changed, so learn more about annuities, compare annuity rates and before making a decision at retirement, secure a personalised pension annuities quote offering guaranteed rates.

Annuity rates table - smokers

The smoker enhanced rates shown below are only examples. For the full tables try the following;

best annuity rates smoker single rates
standard single rates smoker joint rates
standard joint rates with profits rates
diabetes rates purchased life rates
impaired health rates immediate needs rates
   Smoker rate examples - SINGLE & JOINT life

These rates are for a pension purchase price of £100,000 after the tax free lump sum of £33,333 has been taken.

14 June 2024 last updated

Standard Annuity Rates
Age Males Females Joint
55 £5,025 £5,025 £4,644
60 £5,501 £5,501 £5,102
65 £6,168 £6,168 £5,832
70 £7,003 £7,003 £6,583
75 £8,600 £8,600 £7,795
Smoker Annuity Rates
Age Males Females Joint
55 £5,428 £5,428 £4,798
60 £6,052 £6,052 £5,210
65 £7,121 £7,121 £5,911
70 £8,136 £8,136 £6,820
75 £9,758 £9,758 £7,982
The above are examples of the rates available. Click the following for the full standard tables and other annuity options.
Best Annuity Rates

Annuity rate notes:
The above example table shows the best open market option pension annuity rates for smoker single and joint annuitants based on:

Purchase price of £100,000 - this assumes an original pension fund of £133,333 and after the tax free lump sum of £33,333 has been taken;
Annuity rates are payable monthly in arrears and show the gross income (before deduction of tax);
Level annuity rates pay the same income per month for the whole of the annuitants life;
Level annuity rates + 50% spouse pay the same income per month for the whole of the annuitants life and on death, pays 50% of the income to your spouse for the whole of their life;
Annuity rates are for single males and single females from the ages of 50 to 75 years.
No medical enhancements are included in these rates.
The annuity rates table is only a guide as rates change frequently. Please request a free annuity quote for an accurate income for your retirement annuity.

12-month trend 2012
For all annuitants retiring in August 2014 aged between 50 to 75 and purchasing a single or joint life level annuity, they have seen a decrease in the income payable when compared to rates 12 months ago in August 2013.

The following tables show the latest smoker rates compared to last year (follow the link for conventional rates showing a 12-month trend). It is based on an original pension fund of £133,333 and after the tax free lump sum has been taken, £100,000 is used to purchase an annuity. The difference between the two years is shown in pounds sterling per annum. The percentage is the change from the annuity rate paid last year.

SINGLE, level annuity
Single Rate Change 50% Joint Rate Change
  55 Down £144 2.4%  
  60 Down £165 2.5%  
  65 Down £206 2.8%  
  70 Down £164 2.0%  
  75 Down £261 2.6%  
  55 Down £76 1.4%  
  60 Down £129 2.2%  
  65 Down £116 1.8%  
  70 Down £129 1.8%  
  75 Down £131 1.5%  
Annuity table - the annuity rate changes are based on £100,000 in July 2011 compared to July 2012. For annuities specific to your circumstances you should complete the free annuity quote.

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Annuity Rates
  55 £6,157  
  60 £6,591  
  65 £7,295  
  70 £8,213  
  55 £5,902  
  60 £6,307  
  65 £6,868  
  70 £7,669  
£100,000 purchase, level and standard rates
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