Double Your Pension Income

New evidence shows shopping around before you purchase an annuity can mean an increase in your annual pension income of up to 120%

Emma Wall 12 November, 2013 | 3:05PM
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Pension saver Mr J saw an increase in his retirement income of 117% - an extra £1,461 a year for life - after shopping around before he bought his annuity. He was smart enough to consider the options before fixing his rest-of-life wage. 

Exercising your open-market option before securing your retirement income is essential in order to maximise the largest possible pension income. But even though it is guaranteed to help get you extra cash in retirement, not all pension investors take advantage of the choice on offer. 

Tom McPhail, head of pensions research at Hargreaves Lansdown said: "Pension investors lose more money from making poor retirement income decisions than at any other point in the life of their pension. Shopping around at retirement is absolutely vital."

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About Author

Emma Wall  is former Senior International Editor for Morningstar