Disclaimer: Our website and publications aim to give you general information to help you make financial decisions. It is not advice, nor can it take account of your own particular circumstances. For advice with a view to making decisions about your own circumstances you should consult a financial or other professional adviser.

© The Financial Services Authority.

Impaired life and enhanced annuities

Some companies offer annuities that pay you a higher-than-normal income if you have a health problem that threatens to reduce your lifespan. These are called impaired life annuities. Relevant health problems might include, for example, cancer, chronic asthma, diabetes, heart attack, high blood pressure, kidney failure, multiple sclerosis or stroke.

You might be able to get an enhanced annuity if you are overweight, or smoke regularly. Some companies also offer higher rates to people who have worked in certain occupations or who live in certain areas of the country, so shop around and compare the income you can get from different providers.

You can compare annuity rates for single or joint-life, level or escalating annuities at Compare annuities. Enter the type of annuity you’re interested in and the size of your pension fund and see what you could get.