Following a recent survey, it has been revealed that the majority of pensioners could boost their annual income by at least twenty percent; and as such are missing out on millions as a result.
The claims come from a recent survey which has claimed that pensioners who spend time comparing the pensions market gain an average of twenty-one percent more than their original quote, which equates to approximately £248 a year extra on the average £25,000 salary.
According to the results of the survey, with around 500,000 annuities bought each year, there is £124 million which pensioners are missing out on each year; with two out of three of those surveyed eligible to secure a twenty-percent increase on their quote.
The Chief Executive of the National Association of Pension Funds, Joanne Segars, said that it was a “huge problem” for Britain’s pensioners; adding: Half a million people retiring each year are being short-changed by up to £1billion from their future pension income.
“It’s essential that savers shop around. People with health conditions also need to study their options, as they may qualify for an enhanced annuity, which can be far more generous.”
She went on to say: “At present it is too difficult for consumers to find the best annuity and the market suffers from poor transparency. Although there are signs of improvement, more needs to be done.
“People who have saved for their retirement deserve to get a better deal”
As an accountant, Steve Horton, specialises in offering financial planning advice, support and guidance.