Scots miss out on annuity deals

Scots in their sixties are being shortchanged by pension providers who fail to tell them of their right to shop around for a better annuity deal when they retire, research out today reveals.

The vast majority of people in defined contribution or additional voluntary contributions pensions buy an annuity to convert their pension pot into a guaranteed retirement income. Yet 24 per cent of over-60s polled by Age Scotland Enterprises claimed they hadn’t been told by their pension company that they could buy their annuity from any provider on the market under the open market option.

Many are missing out on a much-needed chance to boost their income as a result. A quarter of over-60s in Scotland feel uncertain or negative about their financial situation, with a third reporting that their pension savings have been hit hard by the financial crisis.