ou should shop around and get annuity advice when the time comes to buy your annuity. You do not have to buy your annuity from your pension provider. Getting annuity advice can get you a significant gain on your retirement income.

What difference does annuity advice make?

To demonstrate why getting annuity advice is important we will show you a case study. Mr S is retiring in a few days and he has left it quite late to purchase his annuity, he is 65 years old and has been an editor for the local free newspaper for some 20 years. Mrs S has been telling him for weeks that he should seek annuity advice and see what difference it will make to his income.

He contacts an annuity adviser and gets some quotes for his pension fund of £100,000. He is amazed at the difference in the income that each annuity provider quotes. Here are the results:

Aviva £6603
AXA £5713

There is a difference of £890 per annum if you buy your annuity from Aviva rather than AXA

The annuity adviser then uses the post code to calculate for where Mr S lives in Norfolk. There is a further £60 per annum payable because Mr S lives in an area classed by annuity providers as good for life expectancy. This short case study demonstrates why it is so important to get annuity advice at retirement.

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