Just Retirement, a specialist financial services company, says thousands of retirees are opting for higher risk and lower returns versus high performance pension incomes.

Official figures show that over 50% of people accessing pension money whose plans include a guaranteed annuity rate are not choosing to take advantage of this option. This number is even more surprising when you consider the fact that over one million savers have plans that offer a guarantee to pay income for life of five to ten times the return received from even the best savings accounts. Even more astounding, about one third of the people who are taking cash from pensions are storing it in savings accounts.

One human resource expert explains that if a person has a plan that offers a guaranteed rate for life this person should consider themselves one of the lucky few. This is considered a high performance option. Giving something like this up could be a very expensive mistake.

Breaking this down even further, Just Retirement found that years ago when rates were higher pension providers made promises they are now having to honour. From a guaranteed annuity rate the usual income paid was between nine and 12 percent. However, in some cases it was as high as 14 percent. Furthermore, these guarantees are such a big deal that providers are obligated to tell holders if your pension plan has one.

So, why are some people exploring this option while others are not? The research revealed that holders with smaller pension pots were more likely to shun a guaranteed annuity rate while those with bigger pots proved more open to advice.

HR experts are urging pension holders to examine all the facts prior to making a decision. There is no reason why a pension provider’s loss can’t be a pension holder’s gain.