Buying the best possible pension annuity seems like a no-brainer. It has to last you for the rest of your life, and once you have bought it there is no going back. But many people simply sign up with their existing pension company without checking whether they can do better elsewhere. In fact, according to the Association of British Insurers, figures show a slight decrease in the number of people exercising their option.
Some companies offer higher rates for smokers and people in ill health, but if people are unaware of the opportunity, they could miss out.
You may also want to consider other options than a conventional annuity if you have a large pension pot or other assets that allow you to take some risks with your pension money. These include investment-linked annuities and income drawdown.
