New research has shown that just one in three savers is taking advantage of increasing their savings by looking for the best annuity available.
It is now required that insurers inform customers about buying an annuity from any firm, but figures show that just 34 per cent of savers are actively doing so, the Times reports.
The research by the adviser Hargreaves Lansdown has shown that savers could be sacrificing a retirement income by 15 per cent a year, which would translate to around £20,000 over an average lifetime, the report continues.
However, while guidelines say that an insurer should give an annuity option quote within 48 hours, there are no guidelines in place that require such a quote from your existing firm.
While many savers tend to choose the annuity that is paying the highest rate at the start, advisers warn that this couldbe risky as spending power could be diminished by inflation, according to the newspaper.
Hargreaves Lansdown was established in 1981 by Peter Hargreaves and Stephen Lansdown and provides investment management products and services to private investors in the UK
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