Two in five UK adults aged over 50 are unaware that common health conditions can significantly increase their retirement income, according to new research from Standard Life.
The findings revealed widespread misunderstanding around common conditions and retirement income. More than four in 10 (41%) over-50s are unsure whether high blood pressure or type 2 diabetes (40%) would affect their annuity income. Similarly, 37% were also unsure whether regular daily smoking would have an impact.
Only 17% believe smoking could increase income, and even fewer associate high blood pressure (13%) or type 2 diabetes (12%) with higher rates.
However, analysis from Standard Life found that customers with those conditions could receive on average 9% more income through the underwriting process.
The retirement specialist’s analysis showed that a healthy 66-year-old with a pension pot of £100,000 might expect around £7,510 a year. However, someone with a history of smoking could see their income rise by around 10% to £8,280, whereas someone with type 2 diabetes could see a 9% uplift to £8,280.
Despite the potential for greater income, Standard Life said there is a disconnect between people’s willingness to be open and the income they ultimately secure.
Over half of UK adults (57%) said they are very honest about their health and financial habits when they speak to medical or financial professionals, with only 3% admitting they are not honest.
Yet, only half (48%) of annuities purchased in 2024/25 were enhanced, suggesting a gap between eligibility and uptake.
Pete Cowell, head of annuities at Standard Life, said: “Many people assume health conditions will always work against them financially, but that’s not the case with annuities.
“Being open about your health when shopping around can increase the income you receive for the rest of your life. The biggest risk is not being transparent or not realising that your health information could work in your favour.”
He added: “Ultimately, enhanced annuities exist to reflect individual circumstances, and transparency ensures you get the best arrangement for your situation.”
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