• 40% of over-50s in the UK have low awareness about the impact of health conditions on annuity rates
  • Customers who disclose conditions could secure on average 9% more compared to a standard lifetime annuity
  • Despite this, only half of annuities sold in 2024/25 were enhanced

Two in five UK adults aged over 50 are unaware that common health conditions could significantly increase their retirement income, according to research from Standard Life1.

Despite the potential for higher guaranteed income through an enhanced annuity, 40% of over-50s are unsure how health disclosures influence the rate they are offered.

The research reveals widespread misunderstanding around common conditions. More than four in ten over-50s are unsure whether high blood pressure (41%), type 2 diabetes (40%), or regular daily smoking (37%) would affect their annuity income at all.

Only 17% believe smoking could increase income, and even fewer associate high blood pressure (13%) or type 2 diabetes (12%) with higher rates. However, these conditions can increase total income received, with internal analysis from Standard Life showing that customers could receive on average 9% more income through the underwriting process.

What could this mean for retirement income?

Based on a pension pot of £100,000, a healthy 66-year-old might expect around £7,5102 a year. However, someone with a history of smoking could their income rise by around 10% to £8,280, whereas someone with type 2 diabetes, could see a 9% uplift to £8,280. For many retirees, these uplifts can add up to thousands of pounds more over a lifetime.

Potential impact of health conditions on annuity income*
Annual income a healthy 66-year-old might expect with 7.5% annuity rate £7,5103
Annual income a 66-year-old who smoked 10 cigarettes a day for 15 years might expect from an annuity (10% uplift)

£8,280
Annual income a 66-year-old with high blood pressure might expect from an annuity (3% uplift) £7,740
Annual income a 66-year-old with type 2 diabetes might expect from an annuity (9% uplift) £8,160

*illustrative scenarios based on a 66-year-old purchasing a lifetime annuity with £100,000 pension pot. Based on rates in February 2026


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.”

Being honest but still missing out

The research also highlights a disconnect between people’s willingness to be open and the income they ultimately secure.

Over half of UK adults (57%) also 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.

Despite this, only half (48%) of annuities purchased in 2024/25 were enhanced—highlighting a persistent gap between eligibility and uptake.

Pete continued, “There may be some reluctance in discussing health in a financial context, especially if there is confusion on how certain conditions impact income received. In this case, some providers such as Standard Life, make it possible to complete the health declaration online, rather than discussing sensitive health data over the phone or with an adviser. Ultimately however, enhanced annuities exist to reflect individual circumstances, and transparency ensures you get the best arrangement for your situation.”

- Ends -

Notes to editors

[1] Research conducted by Opinium with a nationally representative sample of 2,000 UK adults aged 50 and over between 27 August and 1 September 2025.

[2] Boost for retirees as annuity rates climb to 7.51% at end of 2025.

About Standard Life plc (‘Standard Life’)

  • Standard Life is a retirement specialist focused entirely on retirement saving and income.

 

  • We are proud to manage c£300bn in assets on behalf of our 12 million customers, and we champion the belief that everyone's journey to and through retirement can be better.

 

  • We offer our customers a broad range of retirement, investment and protection products across our customer brands which include Standard Life, SunLife, Phoenix Life and ReAssure.

 

  • Our vision is to be the UK’s leading retirement savings and income business, building on Standard Life’s leadership positions in the workplace pensions, pension risk transfer and individual annuity markets, and our growing retail business. Our award-winning services are backed by industry leading apps and strong customer service.

 

  • As a FTSE 100-listed group, we are using our size, expertise and influence to deliver better outcomes for customers.

 

  • We’ve set targets to help an additional three million customers take steps toward a better retirement by 2035. We want to play our part in delivering a net zero economy and managing our impact and dependency on nature to shape the world our customers will retire into.

 

  • Standard Life is recognised as a leading employer, with long-standing accreditation as a Living Wage Employer, Living Pension Employer and in 2026 became one of Britain’s Most Admired Companies.

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