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Enhanced Annuities

Did you know you could get paid a higher rate if you’re in poor health?

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So, what is an Enhanced Annuity?

Let's explain...

  • If you’re a smoker, or in poor health, you may be able to benefit from an enhanced or impaired life annuity, which pays a higher guaranteed income for as long as you live, based on a reduced life expectancy. 


Sound like something you'd be interested in?

Here are some considerations worth thinking about...

Enhanced Annuities important information

Here's what you need to know


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  • It gives you a higher income than with a lifetime annuity and still guarantees it for life.
  • You can protect your income against inflation providing a consistent annual increase regardless of whether inflation is higher or lower, or a variable increase linked annually to the Retail Price Index.
  • You can protect your income by taking out death benefit, which continues to pay an income to your partner or spouse after you die, or pays out a lump sum.
  • You can choose how often you want to receive your income and when the money goes into your bank account. Being paid ‘yearly in arrears’ will give you the highest income, and being paid ‘Yearly in advance’ will provide the lowest income.


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  • If you die shortly after the plan starts you may not receive the full value.
  • There is no flexibility to vary income to suit your needs.
  • It's not possible to cash in your annuity.
  • If you die aged under 75 and took value protection, we'll pay out the death benefit amount tax free. If you're 75 or over the amount will be taxed at the beneficiary's personal rate of income tax.


What's the difference between advice and guidance


Advice is given by a professional adviser such as IFAs, financial planners, wealth managers and pension specialists. Advice is regulated by the FCA, protecting you from negligent advice and will give you tailored recommendations for your individual circumstances and ensure that the best option, or combination of options, for your circumstances is found, even if this goes against what you originally thought to be the best decision for you. Taking advice usually costs money.

Speak to one of our pensions specialists today and see how we can help you find the best income for your pension. We can:

  • give advice on all types of pensions
  • maximise your pension income
  • help you make the best possible use of your hard earned savings


Guidance gives a general overview of the options available on the market for free by highly trained specialists. Guidance services won't tell you what to do with your money and you will need to research the market to find the right products and providers to suit your needs and preferences. There's no protection available, but taking guidance is a good place to start to help you understand the various choices available.

For guidance on your defined contribution pension we recommend Pension Wise, a free government service from MoneyHelper offering impartial guidance on your pension options. 

To book an appointment call 0800 138 3944 8am to 8pm Monday to Friday.

Pension Wise won't recommend any products or tell you what to do with your money.

Financial advice

Need help?

Have a commitment-free chat with one of our friendly advisers today. Start your conversation by giving us a little more detail.

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