Will you be 30 per cent financially worse off in retirement?

Your pension company – whether for your personal pension plan or for a company ‘defined contribution’ scheme – will offer you an annuity valuation. Sadly, many people make the mistake of simply accepting it rather than carefully considering if the offer is suitable for their personal circumstances – or whether they could secure a much higher income by finding a better deal elsewhere.

According to a joint report by the National Association of Pension Funds and the Pensions Institute, failure to shop around for the best available annuity deal could see you receive 30pc less annual pension income and, in some cases, up to 50pc less.

The annuity quotes offered by pension providers don’t usually take into account your individual needs and retirement aspirations. Although your provider is required to tell you that you can look elsewhere for a retirement income deal, they do not have to show how good or poor their rates are compared with other insurers.

WHAT ABOUT YOUR HEALTH?

Your personal circumstances – mainly your own health or lifestyle – can also make a significant difference to the deal you can secure. If you have a certain medical condition – something as common as diabetes or high blood pressure for example – or are a smoker, you may actually be able to secure an increased level of income from your fund.

The standard annuity quotes from pension providers are highly unlikely to take into account any of this information. This is another area where the new Telegraph Retirement Service can help you.

Through this service, SFS will carefully assess your individual circumstances and where you want to be financially, before working closely with their dedicated pension specialists, Gateway Specialist Advice Services, to find you a better retirement income deal suited to your circumstances.

Gateway offers expert advice and guidance on the full range of pension fund options that are available at retirement, and will present you with appropriate recommendations to help you make an informed decision.

There is no obligation to act upon any advice provided. By obtaining professional financial advice through the new Telegraph Retirement Service before retiring, you can weigh up the options carefully and feel more confident with the choices you have to make, thereby giving yourself a better chance of fulfilling the comfortable retirement that your life’s work deserves.

For more information about the new Telegraph Retirement Service – provided by Skipton Financial Services: Call 0800 085 1911 quoting ‘TM38’.