According to Life and Pensions Moneyfacts, annuity rates are at an all-time low; George Ladds, head of investment and pension research at Fair Investment Company, explains why it has never been more important to use the open market option.
"Obviously these figures that annuity rates have fallen to an all time low is yet another blow for people coming up to retirement age, as they find they are being offered less and less for their pension pot.
"But unfortunately, as we live longer, annuity rates are going to go down and pensioners have to accept that. But what they don't have to accept is the quote being offered to them by their provider, because more often than not, it will be beaten by another provider.
"With rates falling, it has never been more important to use the Open Market Option to ensure you are getting the absolute best quote on the market for your pension fund.
"Our simple, no obligation annuity service aims to help people increase their retirement income by as much as 30% by using the open market option to find the best annuity rates available. Don't just settle for the first quote, shop around and see how much more you could get."