Not shopping for an annuity could cost British retirees £237m this year

According to Association of British Insurers’ figures 50% of the 400,000 people a year who purchase an annuity do not search the market for the best deal. The consultancy’s analysis of annuity data found that, based on the difference between the average and best annuity rates available on an average £40,000 pension pot, these people would be missing out on income worth over £237m in total over a 22-year retirement.

Andrew Tully, pensions technical director at MGM Advantage, said: ‘Having saved hard for retirement, it seems a cruel blow to lock into an annuity with your pension provider unaware you could have shopped around the market to get the best rate.

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