Annuity incomes can improve following disclosure of health and lifestyle conditions, research from Canada Life has found, revealing that disclosing complex health conditions can often improve annuity incomes by “significant amounts”.

In particular, Canada Life found that smoking, diabetes and body mass index (BMI) were common conditions that could generate a better income.

Disclosing the “relatively common” combination of smoking, higher BMI and type 2 diabetes, for instance, could result in a customer receiving £6,300 extra income over 10 years on a £100,000 annuity.

Canada Life suggested that providing better quality information about health and lifestyle can also make a positive difference, suggesting that online portals to provide medical updates would return "instant guaranteed quotes".

Indeed, Canada Life retirement income director, Nick Flynn, argued that it is "incumbent on the client and their adviser disclosing the full set of medical facts to providers" in light of the "crucial" role that health and lifestyle play in annuity providers calculating the best rate.

He continued: “Annuities are back in vogue following a strong year of rate improvements. But the conversation around disclosure is still key in ensuring clients secure the best possible income.

“By using one of the common adviser portals advisers can get guaranteed enhanced annuities quotes instantly, just make sure the health questions are fully completed for the most accurate quote first time around.

“Annuities can play a vital role in any holistic retirement plan and seeking guidance and advice will ensure you secure not only the best rate, but also the right shape annuity for your individual circumstances.”

Share Story: