An enhanced annuity can provide extra income for people who have health concerns. To find out more, visit our online Retirement Centre at

This video is taken from the Aviva Retirement Centre www.aviva.co.uk/pensions-and-retirement/retirement-centre/. Information contained within the video was, to the best of Aviva’s knowledge and belief, correct at the time of filming and unless otherwise stated, relates to the 2012/2013 tax year. Tax and pension rules may change in the future. This video should not be used as a substitute for financial advice and the content may not apply to your personal circumstances. Aviva strongly recommend that you contact your financial adviser before making any decisions relating to retirement. If you do not currently have a financial adviser you can find one at

Please note: Enhanced annuities may offer a higher annuity rate based on the information supplied, however this is not guaranteed….(read more)

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An enhanced annuity is a type of pension annuity which offers higher payments to individuals who have certain health conditions, a lower life expectancy or a history of lifestyle choices that may impact on their life expectancy, such as smoking.

An annuity is a financial product offered by insurance companies, where an individual can exchange their pension savings for a regular income that will last for the rest of their life. When purchasing an annuity, the individual has the option to choose from a variety of different types, including enhanced annuities.

Enhanced annuities are designed to provide higher payments to individuals who have a lower life expectancy. This is because the insurance company expects to make payments for a shorter period of time, given the individual’s health condition or lifestyle choices. As a result, individuals with health conditions such as heart disease, diabetes, cancer, or those who are overweight or smoke, may be eligible for an enhanced annuity.

The process of applying for an enhanced annuity typically involves completing a medical questionnaire or undergoing a medical examination to assess the individual’s health and lifestyle factors. Based on this information, the insurance company will determine whether the individual is eligible for an enhanced annuity and if so, the amount of the enhanced payments.

It is important to note that not all insurance companies offer enhanced annuities, and the availability and amount of enhancement can vary between providers. Therefore, it is essential for individuals to shop around and compare different quotes in order to find the best deal.

For those who are eligible, an enhanced annuity can provide a valuable source of income during retirement. The higher payments can help individuals to cover their living expenses, medical costs and any other financial commitments they may have.

In conclusion, an enhanced annuity is a type of pension annuity that offers higher payments to individuals with certain health conditions, lifestyle choices or a lower life expectancy. While not everyone may be eligible for an enhanced annuity, for those who are, it can provide financial security and peace of mind during retirement. Individuals should seek advice from a financial advisor to understand whether an enhanced annuity is the right option for them.