Smoking could boost your annuity by 37%
Filed under: Pensions
Penions Tools & Tips
Retirement Tips & Tools
Penions Tools & Tips
Annuity boost from different lifestyles
Still the uplifts are very sizeable and they would be even more sizeable if someone could say that more than one lifestyle factor applied to them.
Here's a case study which shows how combining different lifestyle factors can lead to a big accumulated uplift. Once again, we're looking at a 65-year-old man with a £45,000 pot. He has no history of serious medical problems and he's not taking any medication. But he can still get a decent enhanced annuity.
Here are the lifestyle factors that, in combination, boost his income:
As with the previous table we're comparing against the lowest standard annuity the man could get. In this example, the man wouldn't get 26% just for his weight on its own, he only gets that big an uplift because the other factors apply.
When you buy an annuity it's essential that you shop around between different providers. Don't just take the annuity you're offered by your pension provider. That will almost certainly increase your pension.
Free guide: How to avoid running out of money in retirement
Then your next step is to see if you qualify for an enhanced annuity. So when you're asked questions about your health and lifestyle, make sure you give complete answers and highlight every possible illness/condition and lifestyle.
Obviously, you shoudn't lie; just make sure you provide all the relevant information.
A great place to start is our annuity calculator. It should help you get a basic idea of how big an annuity you can get if you shop around for an enhanced annuity.
Then from there, it makes sense to get advice from a good annuity broker such as Annuity Direct or Hargreaves Lansdown.
The broker will then put you in touch with an annuity provider who will sell you an annuity.
If you want to get an enhanced annuity, you'll normally be asked to fill in a 23-page questionnaire called the Common Quotation Form. However, one annuity provider only asks you to fill in a shorter questionnaire.
As far as I'm concerned, it makes much more sense to fill in a longer form as you're more likely to disclose conditions or lifestyle issues that could boost your annuity. So shop around and make sure you fill in a very long form about your health!