Pensions question - Smoking

[Speedy]

I believe you generally get more money if you are a smoker.

How does this work, and how do they prove whether you smoke or not?

If you don't smoke can you just say you do for the extra cash?

This isn't something I'll be doing any time soon but I was just curious :greengrin

[ArabHibee]

Where did you hear this from?

[heretoday]

Is it because you are likely to die sooner and therefore cost less cash in the long run?

They probably check by making you walk up four flights of stairs. If there is no sweat on your brow at the top you're at it.

Or maybe they interrogate your local newsagent.

[ArabHibee]

Thinking hat not on when I posted. You'll be speaking about annuities I guess. If you said you were a smoker when you were paying into a pension, you will pay higher premiums, its as simple as that. And you would probably have to undergo a medical when you decided to draw your pension.

That's my take on it, although I've not dealt with pensions for a while now.

[Speedy]

Is it because you are likely to die sooner and therefore cost less cash in the long run?

They probably check by making you walk up four flights of stairs. If there is no sweat on your brow at the top you're at it.

Or maybe they interrogate your local newsagent.

I'd assume that is the logic behind it but I was curious as to how they would check.


Thinking hat not on when I posted. You'll be speaking about annuities I guess. If you said you were a smoker when you were paying into a pension, you will pay higher premiums, its as simple as that. And you would probably have to undergo a medical when you decided to draw your pension.

That's my take on it, although I've not dealt with pensions for a while now.

Yes, I was talking about when you buy an annuity.

Sorry for being daft but what do you mean by paying higher premiums? (I'm very new to this :greengrin)

Edit:

Here's a couple of links I came across:

http://www.rightannuity.co.uk/annuity-rates/smoker-annuity-rates/

http://www.rightannuity.co.uk/annuity-rates/enhanced-annuity-rates/

[ArabHibee]

I'd assume that is the logic behind it but I was curious as to how they would check.



Yes, I was talking about when you buy an annuity.

Sorry for being daft but what do you mean by paying higher premiums? (I'm very new to this :greengrin)

Edit:

Here's a couple of links I came across:

http://www.rightannuity.co.uk/annuity-rates/smoker-annuity-rates/

http://www.rightannuity.co.uk/annuity-rates/enhanced-annuity-rates/

I can see your point but it really can't be just as easy as telling the annuity provider that you smoke. I'm pretty sure you would go through a medical for an impaired life annuity.

Nice try though. :greengrin

PS. Annuities aren't the greatest either, that why most folk put off buying them and put their pension into an unsecured pension (Income Drawdown) when they retire. More flexibility.

[Phil D. Rolls]

Is it because you are likely to die sooner and therefore cost less cash in the long run?

They probably check by making you walk up four flights of stairs. If there is no sweat on your brow at the top you're at it.

Or maybe they interrogate your local newsagent.

Yes, just as life assurance premiums are higher for smokers as - in general they have a shorter life expectancy; pensions are less expensive, so you get more for your money.

My financial adviser, RS McColl told me this.

[Danderhall Hibs]

Some companies offer enhanced rates for smokers, the thinking being that they won't be paying out for as long as a non-smoker. Another thing that's being used nowadays is your postcode - if you stay in a poor area you'll generally die sooner so you get an enhanced rate.

Basically a 65 year old Morningside punter should consider taking up smoking and buying a pad in Pilton prior to retiring.