UK - Smokers are missing out on increased rate annuities which can boost their retirement income by up to 5%, experts warn.
The Annuity Bureau said less than 10% of smokers are taking advantage of enhanced benefits available to them.
Managing director Peter Quinton highlighted the low take-up during No Smoking Day yesterday (Wednesday).
He said canny smokers nearing the age of 65 could put themselves on a path to a richer retirement by taking “a few simple steps”.
He added: “If a smoker shops around, he or she is likely to increase his or her income by 11%, plus a further 3% to 5% more because they smoke.”
Millions of blue collar workers are not claiming increased “geographical” annuity rates which are on average 8% higher than standard annuities.
The Pensions and Lifetime Savings Association (PLSA) has announced it will shrink its board by more than one-third as part of a governance overhaul to make it "agile and more appropriate".
Smaller FTSE 350 defined benefit (DB) schemes were nearly 15 percentage points less well-funded than larger schemes in 2017, according to a Goldman Sachs Asset Management (GSAM) analysis.
The advent of collective pension systems could help the UK avoid demographic challenges which will make it "impossible" for society to help savers in retirement, experts say.