50 per cent of annuity customers stay with their current pension provider and could be losing out on thousands

Ensure you get the best deal from your pension savings and shop around

Annuity rates have been continuing to rise this year, and are now higher than the rates you could have secured prior to the Brexit referendum – helping you to achieve a greater, guaranteed income for life from an annuity.

However, a worrying number of people are missing out on the

best possible pension income by simply not shopping around and staying with their current pension provider – when in fact they could have secured a better deal from the whole of the annuity market. To demonstrate the potentially costly impact of not shopping around, investment company Retirement Advantage found that purchasing an annuity with an average pension pot value of £55,700, at the standard rate average from the market would provide £8,460 less income across the course of a 20-year retirement compared to the average enhanced rate. Yet with an annuity there’s more ways that can help you make the most of your pension savings. For instance there may be factors that mean you qualify for up to 50% more pension income1 through an enhanced annuity. Typically, medical conditions and certain lifestyle factors can help you to see an uplift in the income you receive. As a result, the longer you live, the more value you get from an annuity. Many people choose this option due to the peace of mind that comes from knowing that their pension income will not run out before they pass away. However, it is worth bearing in mind that an annuity cannot be cancelled once set up, only during the specified cancellation period. In addition, with an annuity you do have a number of choices to help you decide if an annuity is right for you and to help meet your own personal circumstances; such as: Whether you want your income to continue for a spouse if you were to die first; If you want to protect your fund for beneficiaries in case you die after buying your annuity; and Whether you want your income to increase over time to protect you against the rising cost of living. Whether you decide to choose an annuity or another pensionincome option, it’s important that you seek professional advice or guidance from an individual or company like Age Partnership who are regulated by the Financial Conduct Authority (FCA) to ensure you remain protected and understand all the risks associated with each pension-income option to help you decide how best to access your pension savings. Source: Which? 2017