State pensioners who smoke can potentially boost their retirement income by £412 annually by choosing an enhanced annuity. This type of annuity, which is designed for individuals with health risks, offers higher payouts than standard annuities. For instance, a smoker aged 70 to 74 could earn an average of £9,090 per year from an annuity based on a pension pot of £133,000, while a non-smoker would receive only £8,678. Annuities convert pension savings into a guaranteed income but come with the drawback of being paid out gradually over time, and once set, the decision cannot be reversed. Enhanced annuities take into account lifestyle choices and health conditions, allowing smokers and those with other health issues to receive higher income based on their reduced life expectancy. To qualify for a pension annuity, individuals must be at least 55 years old and have at least £2,000 to invest after taking any tax-free cash.