One of the leading providers of investment management products and services to private investors in the UK, Hargreaves Lansdown, has some interesting thoughts regarding ‘stoptober’ and annuities, given that 22% of men and 19% of women smoke.
Hargreaves Lansdown said: “You’ll be forgiven for thinking that Stoptober is bad for retirement planning given the 17% average income uplift a smoker buying an annuity should achieve.
“Despite a 40% decline in sales across the industry and the death tax cut to be announced today, annuities are the only current solution for those who need a guaranteed income. Shopping around, declaring smoking status and health conditions are all essential and could improve income rates by 40% (HL’s best income improvement was 109% in August).
“61% of annuitants buying through HL in August obtain an enhanced rate compared to just 8% across all UK annuity purchases. Reform is needed!”
