As life expectancy increases, shopping around for the right pension annuity has never been more important, experts at Rockingham Retirement have claimed.
Life expectancy in the UK is increasing at a rate of five minutes every day, meaning that many Brits could soon be spending more than 25 years in retirement.
Commenting in the Peterborough Evening Telegraph, Steve Hunt, managing director at Rockingham Retirement said: "What this all means is that the decisions you make shortly before, or at, retirement are likely to effect a quarter of your life and possibly half of your life."
He adds: "Your pension fund, company or private, may be the largest amount of money you will ever have after your house (and possibly including your house nowadays).
"Making decisions at retirement are the most important financial decisions you are likely to ever make. It is critical that you make an informed decision – so it will pay you dividends to shop around when you retire."
And shopping around for a pension annuity should not just be reserved for large pension pots, Mr Hunt claims: "Even if you only increase your income by £5 a year, who would you rather had that £5 a year for the rest of your life, you, your children, your grandchildren or your insurance company?"
Mr Hunt also dispelled the notion that those in a company pension scheme should not shop around at retirement, adding:
"Even if you are in the best final salary pension in the UK, you should still consider all your options at retirement."
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