Enhanced annuity

[Cashingout]

Looking at DC pensions and was surprised you would qualify for an enhanced annuity if you smoke drink or are overweight. Surely they are choices so it seems wrong that you benefit financially over someone who tries to be healthy but struggles to survive financially?

It's not an incentive payment to encourage the behaviour - that's government territory. All the annuity company cares about is how soon you're likely to die. Healthy people cost them more.

The point being they think you’re more likely to die! You get more money for a shorter period. They need to do that or only healthy people would want annuities.