I should not disclose my smoking status when buying an annuity at retirement – it will negatively impact my policy.

An annuity provides an income in retirement. You use your pension fund to buy the policy and an insurer commits to paying you an income for the rest of your life, however long that might be. If you are in poor health or have habits that negatively impact on your health, you might qualify for an enhanced annuity. This would pay you a higher income than that which would be offered under a standard annuity.