UK consumers urged to shop around for annuities

Shopping around for an ideal annuity deal could result in a significantly greater degree of financial security in later life, one expert has asserted.

Nigel Callaghan from the Hargreaves Lansdown company insists that many of the UK's retirees are missing out financially by taking on an annuity with their existing pension provider, as opposed to gathering information of rival offers.

Indeed, Mr Callaghan told the BBC that by not shopping around for a favourable annuity deal, the typical British retiree stands to be paid ten per cent less each month under terms of their agreement.

"Converting your pension pot into an income tends to be a one-off decision, so if you get it wrong, you will have a long time to regret it," he made clear.

"Sadly, fewer than 50 per cent of people actually do choose the best deal on the market - the vast majority simply buy whatever their existing pension company is offering."

The majority of Britons aged over 50 recently told a survey by Norwich Union that they were confused about how best to fund their retirement.