^{Monday 26th July 2010}

Tens of thousands of pensioners could be in line for compensation after they were not made aware that they could get higher incomes by shopping around, effectively being mis-sold their annuities.

Failures by scheme trustees, pension providers and independent financial advisers who arranged annuities could all be complained against if they left retirees unaware of their right to get a better deal from a different provider.

If the right to find a better deal, known as the open market option, been made clear to pensioners, healthy retirees could have increased their income for life by up to 20%. In addition, smokers, people who are overweight and those with medical problems can get income enhancements of around 30%.

An investigation by the Pensions Regulator last year found that 6% of occupational pension schemes had seriously breached rules by not telling scheme members that they could get more by shopping around.

Claims of against trustees or personal pension providers should be taken through the Pensions Ombudsman, while those against IFAs should be taken through the Financial Ombudsman Service.

If you would like further advice on pensions or annuities, please contact us.