Retirees could boost their pension income by 10 per cent by shopping around for the right annuity, Aviva has claimed.

According to the insurance giant, nearly 450,000 pension annuities are taken out in the UK each year, but it is estimated that just 37 per cent are taken out using the open market option, which could earn retirees an extra 10 per cent compared to sticking with their current pension provider.

As a result of this, Aviva has launched an annuity advertising campaign aimed at raising awareness of the benefits of shopping around for pension income. According to Aviva, nearly half of retirees found it difficult to adjust to living on their retirement income in the first year, while more than a quarter said that they had overspent.

Commenting, Gary Pepler, marketing, brand and communications director for UK Life, Aviva said:

“It is vital that people make the best use of the full value of their assets, whether these are pensions, property or savings. By taking control of retirement planning sooner rather than later and by seeking sound financial advice, we can help to alleviate people’s fears and prepare them for the retirement they deserve.”

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