Marvin OnumonuOne in three people (33%) buying annuities in the last four years did not compare deals between providers before buying, according to research from Just Group.
The gap between the highest and lowest standard rates on guaranteed income for life widened at the start of 2025 to over £400 a year on a £50,000 annuity.
More than a third (35%) of adults aged over 50 bought their annuity from the same provider they used to save with, while 12% were unsure if they had done so.
74% of adults aged 50 to 69 planning to access their defined contribution pension in the next two years did not know health conditions could mean a higher annuity income.
Many buyers, referred to as ‘zombie buyers’, could be missing out on hundreds of pounds a year by not shopping around.
Stephen Lowe, group communications director at Just Group, said: “Higher rates on guaranteed income for life products have increased customer interest but there are still too many ‘zombie buyers’ who are not shopping around to get the best annuity deals available.
“Over the course of an entire retirement, a saver failing to shop around could be missing out on thousands of pounds of extra income – the closest thing in the financial world to being given ‘free money.’
“Anyone considering purchasing an annuity should shop around the open market and ensure they disclose information on health and lifestyle factors to make sure they get a personalised rate – all of which will help them secure the best rate on offer to them.”
