The way annuities are sold is costing hundreds of thousands of retirees as much as £1bn in future pension income, a report by the National Association of Pension Funds (NAPF) claims.
The NAPF said the problem lay with obstacles that stopped many people shopping around for the best deals. It also said some insurance firms which sell annuities were guilty of "sharp practice and murky pricing". "The process for choosing an annuity is a complex one and the majority still go for the "default" option by sticking with their pension scheme provider," the NAPF report said. "This failure to shop around for a better deal can wipe 30% off their annual pension income, and in some cases up to 50%," it argued. The NAPF said most people retired with pension pots worth less ...
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