Research is the key to a happy retirement

Latest figures from the MGM Advantage Annuity Index have revealed that, in the past three months, annuity rates have fallen by 3.65 per cent and enhanced annuity rates by 3.04 per cent.

MGM Advantage’s figures also show that the difference between the best and worst quotes on offer has widened, with a difference of 36.83 per cent for men and 37.22 per cent for women.

George Ladds, head of pension and investment research for Fair Investment Company, said he fears many people are missing out simply because they wrongly believe that using the open market option is a complicated and stressful process.

He added: "The gulf between the best and worst rates is continuing to grow which means the difference between the highest and lowest quote on the exact same pension pot could run into thousands of pounds."

"This really emphasises the importance of using the OMO – everyone should be shopping around first to find the best quote before buying an annuity to ensure they are getting the best rate."

"The fact that rates are falling is yet more bad news for those coming up to retirement age, but unfortunately, it is inevitable. Although there may be nothing we can do to make annuity rates go up, we can make sure we are getting the best possible rates available."

MGM Advantage’s research also found that the difference between an average standard annuity and an average enhanced annuity is 24 per cent which over an average retirement on a pension pot of £50,000 is £12,490.58 for men and £14,101.80 for women.

Get a free annuity quote simply by calling, writing or using the online enquiry service. We’ll introduce you, in various ways, including through the website and by phone, to Independent Financial Advisers (IFA), making finding the right annuity for you easier than ever.