Income gap between best and worst annuity rates widens with age, analysis reveals
Data from Just Group found that at 65, the difference between the best and worst rates is around 10%, rising to nearly 18% at 75.
Older 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.
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