Enhanced Annuity

Find out how your lifestyle can impact your annuity

What is an Enhanced Annuity?

Simple answer – This is a special type of annuity that takes into account your lifestyle and health attributes to yield an income. Smoking, obesity and high alcohol consumption are very strong factors in affecting the annuity income.

Annuity companies offering enhanced annuities have an outlook that is virtually a reverse view of that employed by life insurance companies. Essentially people with shorter life expectancies tend to attract higher premiums from life insurance vendors, due the statistical likelihood of them having to pay out on the policy.

Persons with shorter life expectancies will have higher income payments from the annuity scheme. The annuity company is able to factor in the relevant lifestyle variables by review of qualified analysts. The decisions made by the analysts enable the annuity funds to be released to the customer according to their lifestyle attributes.

It’s very important to consider the larger benefit that may be available for persons buying an Enhanced Annuity. Presently two thirds of consumers interested in buying an annuity would fair better from the enhanced option. The annuity company will not pursue possible special circumstances; however we make it our objective to determine from you what your specific needs are and to quantify your lifestyle choices that would affect the income value of an enhanced annuity.

Where you live as well as occupation could have an affect on your annuity.

If you take medications for high blood pressure and high cholesterol it could increase your annuity.

Being overweight or obese are also contributory factors to an increase of your annuity.

Smoking 10 or more cigarettes a day or smoking as well as being overweight along with other lifestyle choices like drinking a certain amount weekly can also have an affect on your annuity.

Some of the factors applicable to an enhanced annuity:

  Occupation Type

  Socio and geographical location of residence

  High blood pressure

  High Cholesterol


  Excessive alcohol consumption


The list above is set out in the most common order of influencing factor on the annuity income. It is also important to be aware that an enhanced annuity rate could be available if a spouse/dependent has medical conditions.

At the top of the list there is a person’s job and where they live. These have a small impact and are assessed on such attributes as working environment stress and residential environmental zone (industrial, commercial, urban etc.)

Persons with high blood pressure and high cholesterol are estimated to have shorter life expectancy based on a statistical array of related diseases interoperating these symptoms.

Obesity and being overweight are strongly considered in the annuity calculation. There are numerous links to health issues for persons suffering with obesity such as cancer, heart disease, strokes and diabetes. The famous BMI (body mass index) is quite often used to qualify people for an enhanced rate annuity.

In the UK, 3 in 5 people are categorized as being overweight; a BMI of 34 and over would qualify for an enhanced annuity on its own.

Annuitants who consume more than 40 units per week can secure a greater income. There are bandwidths of consumption levels which combined with other lifestyle elements determine the overall income.

Smoking is such an important factor for enhanced annuity offers that there in fact a few annuity companies where smoking is an absolute necessity to be considered for the enhanced option. A non-smoker might be awarded £12,000 per annum income whereas a person who smokes more than 10 per day could receive £14,280 (19% more than the non smoker).

Want more information?

Retirement options should never be decided on a whim, they deserve careful consideration. We believe that all our customers should receive the same service and options that we ourselves want in our retirement. If you’re unsure about what is right for you, or you simply want further information to help you make the right decision please talk to us.