Enhanced Annuity

Designed to provide your client with a guaranteed income in retirement, taking into account the personal, medical and lifestyle information supplied. Also has the option to provide an income for a dependant on the death of the annuitant.

Key benefits

  • Instant competitively priced quotes via IRESSiPipelineHUBAnnuity ExchangeSynaptic Webline and Retirement Line
  • Automatic underwriting decisions on all quote requests, so you will know instantly if your client meets our criteria. No waiting for a provider response.
  • Consistency of underwriting assessment and outcomes.
  • Quotes which are guaranteed for 30 days from the date the quote is produced. The application form and purchase price must be received within the 30 days for the terms in the quote to apply.


See the steps you need to take to make a portal application.

How to apply

Key details

  • To provide your client with a taxable income for the rest of their life.
  • To give your client the choice of taking a tax-free cash sum at the start of the plan in exchange for a smaller taxable income (for immediate vesting personal pensions only).
Your client:
  • has a qualifying medical condition or lifestyle factor
  • is aged between 55 and 75
  • if including a dependant, the dependant must be aged between 50 and 75
  • is a UK resident or one of our existing pension customers.
  • Income takes into account medical and lifestyle information of both the annuitant and any dependant (if applicable).
  • Single life or joint life.
  • Guaranteed period.
  • Various payment frequencies: monthly, quarterly, half yearly, annually (paid in advance or arrears).
  • Income paid level, fixed increase or vary in line with RPI.
Minimum purchase amount
  • £3,750 (after any tax-free cash).
Income options
  • Level income.
  • Increase by fixed percentage or vary in line with RPI.
Important notice

Please note that charges, terms and limits may change. Tax treatment depends on the individual circumstances of your client and may be subject to change in the future.

Key documents

Adviser Guide (PDF) 
Key Features (PDF) 
Customer guide (PDF) 

See all our Enhanced Annuity documents in one place, including forms, guides and brochures.

View all literature

Other information you need

    • Income will be treated as earned income and will be taxable.
    • If your client decides to take a cash sum, it's normally tax-free.
    • We'll deduct tax from each income payment before it's paid.
    • HM Revenue & Customs will notify us of the relevant tax allowances and we'll take these into account in working out how much tax to deduct.
    • Tax rules may change in the future.
    • Under current legislation, once it's set up, your client can't cash in their plan or change the basis of their income, even if their circumstances change.
    • We may, within six months of your client's annuity being set up, check the health and lifestyle information they supplied in their application. To do this we may ask your client's doctor to complete a report.
    • If the answers to the personal, medical and lifestyle questions are inaccurate or incomplete we may reduce their income, or at worst, cancel their policy.
    • When your client dies, their income will normally stop. The total amount paid out may be less than the purchase price.
    • If your client chooses a pension that doesn't increase, or increases at a rate lower than the future RPI, inflation could reduce what they can buy with their income.
    • Your client will receive a lower income during their lifetime if they choose to have an income paid to their dependant after they die.
    • If your client chooses an increasing income, their starting income will be lower. If they choose a guaranteed period, their income could be lower.
    • Under current legislation, once set up, the client can't cash the plan in, or change the basis of their income.
    • Annual P60 confirming tax paid and usage of lifetime allowance.
  • We allow for our charges when we calculate the amount of income offered.

    Initial Adviser Charge

    This is an amount that may be agreed between you and your client for advice and services in setting up a new Scottish Widows Enhanced Annuity.  The charge can be either a fixed amount or a percentage of the annuity purchase price. This charge can be taken, after the tax free cash (if applicable), from the value of the purchase price.

    Initial commission (Non-advised)

    Scottish Widows will pay a percentage of the annuity purchase price for services agreed in setting up a new Scottish Widows Enhanced Annuity.

    Important notice

    Please note that charges, terms and limits may change. Tax treatment depends on the individual circumstances of your client and may be subject to change in the future.

What do you want to do next?


Portals we supportClick for more information.


How to apply


Look at flexible income