UK adults should be open with their annuity provider about any health conditions they have as it could entitle them to higher payouts, a Just Retirement spokesman has advised.

In an interview with the Independent, Steve Lowe, Just Retirement's director of external affairs, said: "You must tell the provider if you smoke, if you are taking any prescribed medication and if you have had any period of hospitalisation in the past five years.

Over the past month, some annuity providers have slashed rates by five per cent as they respond to the Bank of England's quantitative easing programme so it is more important than ever for people to make their retirement income work as hard as possible.

Many pensioners are not disclosing health problems such as diabetes, high blood pressure and heart disease, which can all entitle people to an enhanced annuity – which offers larger returns than standard policies as the annuitant is likely to have a shorter life.

Over the past month, some annuity providers have slashed rates by five per cent as they respond to the Bank of England's quantitative easing programme so it is more important than ever for people to make their retirement income work as hard as possible.

"If you have answered yes to any of these questions there is a good chance you could qualify for an enhanced annuity."

A recent study by Oxford Economics revealed that people in the UK could be missing out on £3 billion in additional retirement income as they do not apply for an enhanced annuity despite being entitled to one.