Pensioners who seek advice receive higher annuities

Pensioners who seek the advice of an independent financial adviser are more likely to secure an annuity income 24% higher than those who do not.

The finding comes alongside worrying revelations that more pensioners are conducting 'DIY retirement planning', a joint study from Prudential and The Association of Independent Financial Advisers showed.

With an increasing number of retirees feeling the squeeze on their pension pots, many with less than £25,000 in assets are making financial decisions while lacking the appropriate knowledge about their retirement options.

As such, retirees risk losing much-needed funds, with those with the smallest pots ending up even more disadvantaged.

Deputy Chief Executive of Prudential UK Barry O'Dwyer said: "It is very important that everyone moving towards retirement ... understands the full set of options available to them and are not excluded from the advice market.

"The decisions consumers make at retirement will have a profound effect on their lifestyles, their future demands on government and on the whole of society."

Posted by David Shuker