Retirees could be missing out on a collective £33m a year if they rely on online annuity brokers as many fail to offer the best possible rates, analysis Key Retirement Solutions (KRS) shows.
The over 55 advice specialist warned many online annuity broking services guarantee a better deal but fail to offer the best rates as they do not search the whole of the market. It said about 73,000 pensioners used the top 50 online annuity brokers in the 12 months to March 2013 cashing in just under £3bn from pension pots. However, on an average fund of £39,748 the difference between the best rate and a better rate can be as much as £457 in income a year, KRS found. This works out to £33m a year across 73,000 customers. KRS said the best rates on a £39,748 fund for a healthy 65-ye...
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