£130M LOST IN PENSION CASH-INS

Thousands of people cashing in pension pots last year could have been thousands of pounds better off if only they had shopped around for the best income.

Research carried out by the Pensions Policy Institute for LV= found 30,000 people could have got an average £4,000 more over the course of their retirement by simply comparing the market.

That’s the number who accepted the annuity (lifetime income) offered from the pension firm they had saved up with – and missed out on additional income worth a total of £130million.

Around 75% of people believe getting financial advice helped them get more for their money.

And 90% who took advice felt confident they made the right choice. Yet the numbers seeking professional advice are low. Just 25% of those already retired took financial advice to help them to get the best deal on their savings.

It’s vital people get the best possible income to ensure they have the most comfortable retirement.

The LV= research also found that we expect our retirement income to stretch and cover more than just life’s essentials.

More than 50% of people planning to retire want their income to pay for holidays – and 25% would like to leave money behind as an inheritance.

Meanwhile one in six want to be able to use their retirement income to help their children or grandchildren get on to the property ladder.

John Perks, managing director of Life and Pensions at LV=, said: “Last year alone people missed out on £130million over their retirement by sticking with the same provider when taking out an annuity.

“This is echoed across the retirement space with consumers failing to access the best products.

“People are expecting their pension pot to stretch even further nowadays so it’s crucial they take control and get support to help them get the most from their savings.”