Retirees urged not to delay annuity purchases

Retirees around the UK have been urged not to delay the purchase of an annuity policy in the hope of securing a better deal at a later date.

According to Just Retirement, this strategy is a risky one that could lead to people losing out on significant sums when they eventually do swap their pension pot for an annuity and a regular income.

The warning from the retirement solutions firm has come after some serious turbulence in world financial markets, in which many elderly people have money invested.

"In uncertain economic conditions, consumers may feel it wise to defer buying their annuity," said Nigel Barlow, head of retirement income solutions at Just Retirement.

"However, while this may be the right decision for some, it is also a risk and depends on how certain you are that the markets will recover."

Earlier this week, Des Hamilton, technical director of the Pension Advisory Service, suggested that many of the UK's young consumers are not committed to saving for retirement.