An enhanced annuity could offer you a higher income for life if you have medical conditions or bad habits that affect your health.

This is because annuity companies calculate your rate based on how long they will have to pay you an income, so pay you more if you have a shorter life expectancy.

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You can only buy an annuity once, so getting it right first time is important to secure the best income for your retirement. Read our guide on annuities for more information.

The annuity your pension company offers you when you retire may not be the best rate, so make sure you compare annuities from as many different companies as you can before you buy.

Our comparison lets you compare enhanced annuity companies, but seek independent financial advice first if you are unsure what to look for.

Who can get an enhanced annuity?

If you have medical conditions or habits that affect your health, you should qualify for an enhanced annuity.

For example, if you suffer from a heart disease, diabetes or if you have ever smoked.

What income options could you get?

Most annuity companies offer you the chance to choose one of the following:

  • Index linked income: This means your income will rise in line with inflation each year, but usually means you start on a lower income.

  • Flat rate income: This means you get a fixed income amount each year, regardless of inflation.

You should also get the option on how often you get your income, with options including monthly, quarterly, half yearly and annually.

Enhanced annuity FAQs


Can I withdraw from an enhanced annuity?


No, once you buy an annuity the only money you can take is the income you get from it. This is due to change in 2017, find out more here.


When can I buy an enhanced annuity?


Most pension companies let you buy an annuity when you reach 55, but make sure to check the age requirement with each company to be sure.


Can I get a joint enhanced annuity with my partner?


Yes, as long as one of you has existing medical conditions or poor health, you should qualify for a joint enhanced annuity.