The highest open market annuity may pay £662 extra a 12 months over a typical 20-year interval than the worst-paying, in response to Canada Life.
The distinction would imply an additional £13,240 in earnings over twenty years.
In actuality, the distinction between the most effective and worst offers out there could possibly be even greater, Canada Life mentioned, as many suppliers don’t brazenly publish their annuity charges.
The figures are based mostly on a pension pot of £150,0001.
Nick Flynn, retirement earnings director at Canada Life mentioned: “Even in one of many simple situations, our calculations present the distinction in earnings over a typical 20-year retirement can add as much as hundreds of kilos. That’s earlier than you think about well being and way of life associated questions, which may add further earnings.
“With the appreciable curiosity from clients searching for to capitalise on annuity charges the place they’re at the moment, it is likely to be straightforward to lose sight of a number of the easy measures folks can take to make sure they extract as a lot worth from their pensions as attainable.”
Right now, a benchmark annuity for somebody aged 65, with no pre-existing well being or way of life situations, would pay within the area of seven%, he mentioned.
Canada Life mentioned the annuity fee can enhance considerably when disclosing widespread well being or way of life situations, comparable to diabetes, hypertension or being a smoker. Age may also have a giant affect on the annuity fee supplied.
• Supply: Open market annuity charges taken from https://www.moneyhelper.org.uk/en/pensions-and-retirement/taking-your-pension/compare-annuities, based mostly on a 65 12 months previous, £150,000 buy worth, 10-year assure, no well being or way of life components. Charges as at 27.11.2023. In Canada Life’s instance, the most effective quote would produce an annual earnings of £10,352, with the worst worth paying £9,690, £662 a 12 months much less earnings. Over 20 years that might equate to £13,240 in much less earnings.
