Pension firms trim back perks for smokers and others expected to die early

Pension firms trim back perks for smokers and others expected to die early

Pensioners in ill health or with unhealthy lifestyles can get an income boost from ‘enhanced’ annuities, but the uplift is falling Credit: Ian Jones Annuity rates have plummeted in the past few years – but rates offered to people in poor health have fallen fastest, new figures show.

The rates offered on "enhanced" or "impaired life" annuities have fallen by as much as 15.6pc since 2015, compared with a 2.6pc drop in an equivalent standard annuity, figures show.

Enhanced annuities are sold to people with conditions that reduce how long insurers expect them to live. Consequently, pension firms pay higher annual […]

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