Marvin OnumonuOlder retirees risk missing out on thousands of pounds by not shopping around for the best annuity deal, research by retirement specialist Just Group found.
The gap between the highest and lowest paying Guaranteed Income for Life (GIfL) providers gets wider with age.
At 65, the difference between the best and worst rates is around 10%, rising to nearly 18% at 75.
A 65-year-old with a £50,000 pension pot could get about £355 a year more income by picking the top rate instead of the worst.
At 75, that gap jumps to £717 a year.
Over a long retirement, this adds up to thousands of pounds.
The research found that at age 70, the best and worst rates differ by £564 a year, or 15%.
At age 75, a healthy retiree could get £4,780 a year from the most competitive provider, compared to £4,063 from the least competitive.
David Cooper, director at retirement specialist Just Group, said: “Shopping around for the best deal is important at all ages but becomes increasingly important for those buying later in life because of the huge gap between the best and worst rates available.
“Demand for Guaranteed Income for Life solutions has risen sharply for the last few years as annuity rates have improved, but only those comparing between providers and being prepared to switch will reap the full benefits.
“That means disclosing health and lifestyle information so that the rate offered is personalised to your circumstances, then taking that information into the open market to see which providers are the most competitive.”
Cooper added: “The better the deal, the more income you will enjoy for the rest of your life.”
He recommends all retirees take the free, independent and impartial guidance from the government-backed Pension Wise service.
