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Enhanced annuities

An enhanced annuity (also known as an impaired life annuity) can increase your retirement income by as much as 43%^. It pays you a higher income than a conventional annuity because of your health or lifestyle conditions.

You usually get penalised for being in poor health when buying financial products; through higher premiums or a worse deal. But with annuities, a health condition can work in your favour… and the best bit is over 80%# of our annuity customers qualified for an enhanced annuity in 2016!

What is an enhanced annuity?


Enhanced annuities work on the assumption that your life expectancy is reduced if you have certain medical or lifestyle conditions. Annuity providers see you as someone that they'll have to pay for less time than someone in a better state of health.

Therefore they compensate you by paying you a higher income, essentially using up your pension pot more quickly. This higher income is paid for life, even if your health improves or you change your lifestyle!

Do you qualify for an enhanced annuity?

You don't have to be seriously ill to qualify; there are currently over 1,500 medical and lifestyle conditions which could increase your annuity income.

Your life expectancy will be assessed based on health and lifestyle conditions to ascertain the seriousness of your impairment. Remember to be completely honest about the degree of your illness! 

The uplift you’ll get depends on the seriousness of the condition, but even If you smoke, are overweight, drink alcohol regularly or take any prescribed medication you could qualify for enhanced rates and more income. 

You may have to provide a report from your doctor for some medical conditions, or evidence that you smoke.

If you or your partner answer 'yes' to any of the following questions, you may well qualify.

  • Do you smoke?
  • Have you been diagnosed with high blood pressure, requiring ongoing medication?
  • Have you suffered a heart attack requiring hospital admission?
  • Have you been diagnosed with cancer (excluding skin cancer and benign tumours) requiring surgery, chemotherapy or radiotherapy?
  • Have you been diagnosed with Parkinson's disease?
  • Have you been diagnosed with Multiple Sclerosis?
  • Have you taken early retirement on the grounds of ill health?
  • Have you been diagnosed with diabetes, requiring insulin or tablet treatment?
  • Have you suffered from a stroke (CVA), excluding mini-strokes (TIA's)?
Diagram of potential increase in annuity by shopping around

^Based on Key's average customer 2016 - Male, single, aged 64, fund value £59,660.91. It depends on your individual circumstances if you are able to achieve these increases above.


Tips to get the best enhanced annuity for you...

  1. Shop the whole market. There isn't a single 'best' provider for everyone which is why we get quotes from every enhanced annuity provider in the market.
  2. Be honest. Tell us everything about your health and lifestyle – don’t hold back or you could lose out.
  3. Tell us about your partner. You could still get an enhanced joint income even if you’re in fantastic health if your partner is in poor health or a smoker.

#Key customers who took out an annuity in 2016

Get an instant enhanced quote

Try our free online annuity calculator for an instant enhanced annuity income quote.

Key promise

Customer satisfaction is at the heart of everything we do; we pride ourselves on being independent, transparent, supportive and straightforward. We're passionate about helping you to make the most of your finances when you’re in or approaching retirement.

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