Don’t Settle for Less: Pension Potential Urges Retirees to Shop Around for Annuities
Echoing Martin Lewis’s recent pensions advice, Pension Potential is urging retirees to shop around for the best annuity rates, as sticking with their pension provider’s offer could cost them thousands. Lewis, in his February newsletter, highlighted the importance of comparing annuity rates, especially given the recent rise in rates.
Steve Butler, CEO, Pension Potential agrees and says: “Annuities offer valuable stability, but retirees shouldn’t assume their provider offers the best deal. Shopping around is crucial, as rates can vary significantly, particularly for those with health conditions.”
New data from the Association of British Insurers (ABI)[i] shows annuity sales rose by 24% last year, driven by higher interest rates and more competitive deals. The ABI found that seven in ten buyers shopped around, choosing a different provider, while there was an increase in sales of joint life and escalating annuities. Best buy tables indicate that a healthy 65-year-old can now secure nearly £7,550 a year for every £100,000 pension pot[ii].
Butler adds, “Annuities became the pariah financial product in 2015 when pension freedoms gave retirees more flexibility, and rock-bottom interest rates made them far less attractive. Fast forward to 2025, and they can make sound financial sense, offering some certainty for retirees in uncertain times.”
While Butler acknowledges that annuities now offer more promise, he cautions, “The difference between the best and worst deals can amount to tens of thousands of pounds over a lifetime which means it is crucial to shop around.”
He continues, “Technology has made it incredibly easy to check the entire market, and there are plenty of tools, like our online annuity calculator, to help retirees compare rates and secure the best deal. A few minutes of searching could result in thousands more for your retirement income.”
Pension Potential was recently award prestigious Paul Bradshaw Innovation Award 2025 at the Boring Money Awards[iii] for its pioneering hybrid solution, which combines cutting-edge technology with expert financial advice to empower consumers in making informed retirement planning decisions.
For more information visit: www.pensionpotential.co.uk.
