Failure to shop around for an annuity is costing pensioners £124m per year, Key Retirement Solutions claims.
KRS said customers using its annuity brokerage service receive on average 21% more than the quote given to them by their pension provider. This equates to £248 per year extra per pensioner, the adviser said.
With 500,000 annuities bought per year, this means pensioners could be missing out on £124m in total by buying inappropriate retirement products which do not take into account their health conditions and life expectancy, KRS said.
KRS group director Dean Mirfin said: "It is simply wrong that people accept the default option from their pension provider when they could increase their income by on average 21% or more by simply taking a few minutes of their time to speak to a specialist.
"Someone who is retired for 25 years is effectively giving up on more than £10,000 if they miss out on an average £428 a year in income.
"Customers should shop around as the default and we continue to make this process as straight forward as possible, it only taking a matter of minutes to find out what income can be achieved plays a big part in this process."
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