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Annuities: an insurance product like no other

7 in 10 people aged 55 or over are unaware that they could boost their annuity income. So we've explained how…

Important notes

This article isn’t personal advice. If you’re not sure whether an investment is right for you please seek advice. If you choose to invest the value of your investment will rise and fall, so you could get back less than you put in.

According to our research, 70% of people aged 55 or over don’t know that they could qualify for a higher annuity income by providing their health and lifestyle details.

From 55, you can normally swap some, or all, of your pension with an insurance company. In return you’ll get a secure, guaranteed income for life – an annuity.

With lots of insurance products, giving health and lifestyle details usually means more paperwork and higher premiums. Let’s say a 65 year old diabetic disclosed their medical details when applying for travel insurance to cover a 10 day cruise in Spain. The price would go up a whopping 25%.

But an annuity is an insurance product like no other, and if the same person applied for an annuity with a pension worth £100,000, their annual annuity income would actually go up by more than 12%.

Please remember that once set up, an annuity cannot normally be changed or cancelled, so it is important to consider all your options carefully.

Find out more about annuities

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More chance of a higher income

Years ago enhanced annuities were only offered to those who suffered from serious health conditions.

But nowadays you don’t need to be ill to qualify. Just providing details about your height and weight, alcohol consumption and marital status could mean you qualify for a higher income.

Common conditions for enhanced quotes

Scroll across to see the full chart.

Source: HL annuity engine, April 2018 to April 2019

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How much more income could you get?

The enhancements can be huge. Based on today’s best rates for a £100,000 annuity, a 65 year old who has high blood pressure, drinks 14 units of alcohol a week and smokes 10 cigarettes a day would get an extra £982 a year. Over 20 years, that adds up to £19,640.

Last year, more than half our annuity clients qualified for an enhanced rate and they were quoted nearly 14% extra income on average (average increase quoted in 2018, based on the top and bottom rate – actual increases will depend on your personal circumstances).

So why not see if you might qualify too? It only takes a couple of minutes to check.

Get quotes now

Remember, how much you'll receive will depend on your pension value, the options you choose and your personal circumstances. Annuity rates can change regularly and may go up or down in the future. Quotes are guaranteed for a limited time only.

What help is available?

What you do with your pension is an important decision. We strongly recommend you understand your options and check your chosen option is right for your circumstances. Take advice or guidance if you’re not sure. The government provides a free and impartial service to help you understand your retirement options - more on Pension Wise.

This article isn’t personal advice. If unsure, please seek advice. We offer a range of information and support to help you plan your own finances. We also have an award-winning advisory service that can help you achieve your goals. Our flexible approach means you only pay for the advice you need.

If you’d like to get annuity quotes over the phone, you can call our annuity experts on 0117 980 9940. They’re available six days a week: Monday-Thursday 8am-7pm, Friday 8am-6pm and Saturday 9:30am-12:30pm.

Important notes

This article isn’t personal advice. If you’re not sure whether an investment is right for you please seek advice. If you choose to invest the value of your investment will rise and fall, so you could get back less than you put in.

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