‘Stoptober’ and Annuities

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!”