According to recent research, choosing the wrong annuity is costing retirees in Britain around £53 million in pension income each year.
When you compare the worst and best annuity rates from the traditional annuity providers, the difference can be as much as 27 per cent. This difference can make the difference for retirees between having a decent pension or struggling through their retirement. Compared to a pension income of £6,000 per year, a pensioner could potentially have had a pension income of £7,620! Over an average retirement period, this means the retiree could have lost out on £25,920 or even more.
The director of Alexander Forbes Annuity Bureau, David Marlow (pictured) said:
“If you are close to retiring you really need to make sure you explore all opportunities available in order to make the most of your money. There is more to retirement than leaving work and it is vital to plan ahead to get the best suited solution for your retirement income.”
The Annuity Bureau has produced a free publication called The Final Countdown to help pension holders approaching retirement to get the best from their pension that they can. You can download it from their website or by telephoning 0845 602 6263.
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