Get more money from your pension

You could get up to 70% more income every month once you retire just by making one crucial decision. We reveal how.

Did you know you could get up to 70% more income every month once you retire just by making one crucial decision?

You may not believe it but it's legal and doesn't involve any extra risk to your money. But it's something your pension provider is unlikely to highlight. Why? Greed of course.

If you've got a pension, once you retire you will probably use it to buy an annuity, which basically pays a regular income for life.

Not all annuities are the same, and the only way you can be sure to get the best deal is by comparing rates from different providers.

But in practice two thirds of pensioners take a second rate deal offered by their own pension provider simply because they aren't aware the can look elsewhere. And if you make the wrong decision, that's it, as once you've bought an annuity you can't change it.

There are massive difference between the best and worst rates. On average you could improve your income by around fifteen to twenty per cent, but it could be as much as seventy per cent if you have health problems.

Part of the problem is that many of us are unaware we have a choice. Pension companies exploit this, profiting massively from easy annuity sales to their pension holders.

In fact research from the financial services regulator shows that almost 40% of providers aren't even giving customers the legal minimum information needed.

Their greed means that pensioners – who've already seen poor performance from their pension funds – will be even worse off.

This can't go on. We're want an end to the exploitation of consumers by pension providers. And a new, fairer system that educates and encourages everyone to consider the best options for their retirement income.

Until then, do your own research. It's your money, so make the most of it.



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Get more money from your pension 

Did you know you could get up to 70% more income every month once you retire just by making one crucial decision? It's legal and doesn't involve any extra risk to your money. But it's something your pension provider is unlikely to highlight. Why? Greed of course. 
If you've got a pension, once you retire you will probably use it to buy an annuity, which basically pays a regular income for life.
Not all annuities are the same, and the only way you can be sure to get the best deal is by comparing rates from different providers.
Sadly though two thirds of pensioners take the deal offered by their own pension provider simply because they aren't aware the can look elsewhere. 
This could have dire consequences as there is a massive difference between the best and worst rates. On average you could improve your income by around 15 to 20%, but it could be as much as 70% if you have health problems. And if you make the wrong decision, that's it, as once you've bought an annuity you can't change it.
Part of the problem lies is that many of us are unaware we have a choice. The bigger problem though is that pension companies exploit this, profiting massively from easy annuity sales to their pension holders. 
In fact research from the financial services regulator shows that  almost 40% of providers aren't even giving customers the legal minimum information needed. 
Their greed means that pensioners – who've already seen poor performance from their pension funds – will be even worse off.
This can't go on. We're want an end to the exploitation of consumers by pension providers. And a new, fairer system that educates and encourages everyone to consider the best options for their retirement income. 
Until then, do your own research. It's your money, so make the most of it. 

The Pension providers are nothing more than legalised mafia, and Gordon Brown the God Father when the taxed the profits on pensions when he was Chanceller. We need to stand united and stop this rip off. We here in UK are worst off than any other Western European Contry, and our brothers in Australia who retire get all their pensions paid free of incomne tax.

All the retired and about to retire are a force to be reconed with and we should all stand united to force new legislation that the Government will take action to stop this rip offn that makes the fat cats in the financial sectors even fatter while leaving the poor pensioners even poor.

Topple the Government on this issue. Certainly, if that's what it takes for fair play.

I can't help but think that by doing the research oneself anyone can probably make as good a decision as a broker. But from what I understand the annuity company will keep the fee that would have gone to a broker, so there is no advantage in doing the research except that you can hold an intelligent conversation with a broker. Is this the case?

If as you say the FS regulator is aware that pension companies are braking the law WHY is the relevant government office ..1..fining them...2..Closing down the offending pension company providers ..3..Imprison the CEO of the pension company.
Surely the talking has to stop ..the onus must be on the offender not the people who are suffering especially as you say it is known a crime is being committed and by whom.

Isn't this video & post just a complete waste of time without a recommendation of where to go to get the best deal, I've seen this kind of advice all my life & no one ever says where is the best place to go!! it usually ends with speak to your financial adviser!! who then wants a fee, what is the point of sites like this if you don't say who provides the best deal??

So based on the above, am I best off approching a broker and asking them to find the best annuity or asking a financial advisor, or looking myself ?!? Whats the charges involved ?

ps - like a lot of people Ive got 3-4 smaller pension pots (from different companies worked for) rather then one big one, do I have to find the best annuity for each one, rather than accepting my pension providers default one ? Many thanks, Sean

The pension providers should be more transparent and honest about their transactions. The stock market and fund profits are used to pay the agents high salaries, provide excellent offices, and exceptional employee bonuses with little going to increase the wealth of the pensioners. Money in the bank beats many pension funds for returns on investment.

Many pension funds actually lose money and the investor also loses big time, but the agents and managers still get their full income until the whole organisation goes bust. Tough on the investor who has seen investment and pensions disappear. Transparency and continuous auditing of pension providers must be done to protect the contributers.

It happened to me, and I wouldn't trust any fund managers now. Even the state pension is designed so that 70% of the contributers never live long enough to collect the money. i.e. Legalised theft!!!
Yes, I'm Cynical, but decidedly right to be cynical, through experience.

Hello Susan
You are absolutly correct on this one, even if a person takes an annuity from the pension provider they have been with there is an inhouse commission which goes nowhere. So you are quite correct in saying that its always best to consult an independent finacial adviser to make sure you are getting the best annuity rate for your pension pot, another issue to consider is perhaps a drawdown arrangement this sometimes can work to a persons advantage but you will not get these options unless you consult a good IFA.

I do not know a lot about pensions , but if I had a £100,000, pension pot, I would rather have £10,000 a year to invest and spend, than give it to a company who would probably take hefty fees, and then hope I would die early. I do not trust banks, building societies, f.s. advisors, or politicians ! As a smoker I probably have ten years or less, so at 75 I probably will not be worried about a pension. I have been doing well with a stockbroker on line and buying stocks and shares. Its easy and there is plenty of advice and help online. My advice is , do not trust other people with your money until you have checked all the details. Just tap in your question and find out. There are still some decent ,honest people out there. Check out Hargreaves and lansdown.

It is not always sensible to go down the "annuity route". If your pension pot is reasonably substantial it may be more advantageous to take the maximum ermitted monthly sum as draw down income. Your pension pot, if well invested will continue to increase in value. In the event of your death the whole amount will be there for your spouse/heir(s).

People with several money purchase pensions (not final salary ones) can also transfer them into a low cost SIPP (self invested personal pension) and then control themselves what the money is invested in and when and how (income drawdown, annuity, etc) they take their pension.

You should ALWAYS transact open market annuity research through a financial advisor. These services are 95/100 times free of charge and are without obligation. Your medical history will come into play and even where you live or what you do/did as an occupation could entitle you to a higher income.

Common medical issues such as High Blood Pressure and/or High Cholesterol can qualify you for an enhanced annuity, so no matter how small or how long ago your issue, it could get you more income if you declare it

I have attached the link to our website as we offer free, no obligation pension annuity quotes with no costs incurred by yourselves if you take annuity through us or elsewhere.

People are best advised to go through a financial adviser as a whole of market annuity search as through as ones we do would be a logistical nightmare for anyone, our systems are designed to streamline the process and make it quicker, easier and WILL find you the highest rate, whether through your current provider or somewhere else on the open-market

Getting the best value annuity is simple if you accept it will take some time and you contact an Independent Financial Adviser who specialises in pensions and offers 'whole of market' choice.

Your adviser should firstly check the details of your existing pension to ensure what the plan says it will provide is actualy being offered. You may be entitled to bonuses or enhanced or favourable annuity rates but you are not aware of this.

The adviser should then go through a fact find and lifestyle questionnaire with you, see what I mean about patience, so they can contact ALL annuity providers with your full medical and personal details to see who will provide the best deal specific to you. You must be 100% honest when doing this. As a rule of thumb the older you are and the worse condition you are in, the better the annuity.

This process can take up to 10 working days just to get the figures as some annuity providers are just slow in responding. Even when the 'results' are in there may be scope for your adviser to negotiate better terms for you.

What you must not do is go on the internet and get some quotes from a search engine and buy an annuity. These can only funcion with a small number of providers, about 5, and cannot tailor your requirements or discuss your opions.

By all means do some research to give you peace of mind but dont expect the best deal via the internet. Find an IFA on the internet, talk to a couple, ask them what and how they do things and if you are comfortable, let them do their job.

Great advice, thanks for raising awareness

I recently had this dilema wether to take out an annuity with a pension pot i received or invest elswere. what i did not like was giving my money over to an annuity/insurance company and kissing it goodbye.I receive two pensions a month and so decided to invest my lump sum some in solar panels on my home bringing in a tax free index linked sum and the rest buy some land with..nothing in this life is sure..here,s hoping.

Read your comments about annuities on "Moneywise" with great interest as I am approaching pension age and have a great many chronic health issues. I was not aware that same could affect the value of my pension.
You say that you have attached a link to your website but it is not available in my "Moneywise" email. Could you please send it to my email address as I would very much like to access it?

Many thanks

Sean.
If you have several small pensions, it might be a good idea to consider transfering them to a low cost SIPP(self invested pension scheme) I myself have done this and the firm that I used charged no initial(entry) fee and no management fee, over and above that charged by the fund managers, so actually if is not low cost it is no cost. You will have to decide with funds to invest your money in, and in most cases it will grow larger and faster than with your pension providers. I do not wish to advertise but the firm I use is called Hargreaves and Lansdown, I have no connection with this firm other than being a satisfied customer of their's.

Does anyone have advise on 'Third way Annuities'?