Key decisions 'can triple pensions'

By making certain key choices, it might be possible for a typical middle wage-earning male to increase his yearly pension income three-fold.

That is according to the National Association of Pension Funds (NAPF) and the Pensions Policy Institute, which suggest that a man earning an average wage could increase his retirement income from £2,200 to £7,710 by shopping around for an annuity and working for a year beyond the state pension age, among other decisions.

Annuity choices in particular could prove important, as the study showed that seeking out the best product might add as much as £850 to a man's income in his later life.

Joanne Segars, NAPF chief executive, warned that people might have to work for much longer periods of time if they do not get the best deal on their pension.

She added: "Getting a good deal on charges and annuities can mean the difference between enjoying retirement and spending years more at the desk.

"Encouragingly, the report shows there are a host of things people can do to secure a decent pension for their old age."

Copyright Press Association 2012