Many British residents are failing to shop around for pension and annuity products
, costing themselves a significant portion of their retirement income and forcing them to delay retirement, according to a new report for the National Association of Pension Funds (NAPF) by the Pensions Policy Institute (PPI).
The study found that a failure to “shop around” for the best annuity deal could be reducing pension income by up to 12 percent and adding two years onto their working life.
"Getting a good deal on charges and annuities can mean the difference between enjoying retirement and spending years more at the desk," said NAPF Chief Executive, Joanne Segars.
The report examined the pension of a median earning male, age 25, with an annual salary of 20,000 pounds ($31,600). Assuming a retirement age of 68, the study found seven factors that could triple retirement income, the report said.
Opting into a pension at age 30 instead of 40 could add as much as 990 pounds per year, while increasing pension contributions by 1 percent would add an additional 780 pounds if matched by employer contributions, the study said.
In addition, capitalizing on pension providers that offer fees of as little as 0.3 percent could boost retirement income
by 17 percent compared with typical fees of approximately 1.5 percent the report said.