77 per cent of defined contribution (DC) pension members could still be missing out on the level of income in retirement to which they are entitled, as they are not taking the Open Market Option (OMO) warns AWD Chase de Vere.

The independent financial advisers said only 23 per cent of group pension scheme members use the OMO, with the rest likely to miss out on the best annuity rates. This disadvantage is compounded by the fact that most group pension members also miss out on the chance of an enhanced annuity.

"The current system gives very poor value for group pension scheme members," said Patrick Connolly, head of communications at AWD Chase de Vere. "They can miss out on both the best annuity rates and the option of enhanced annuities. Enhanced annuities can increase a client's income by more than 40 per cent."

Connolly said that at this time, when so much focus is placed on employees to save for retirement with the launch of the National Employment Savings Trust (NEST), "it is ludicrous that so little help is provided to people when it comes to getting the best value from their hard-earned pension savings."

AWD Chase de Vere would like to see more employers offering financial advice in the workplace for those who have chosen to take pension benefits, as well as a reworking of annuity quotes to provide a "clear comparison on enhanced and standard annuity rates from a wider range of product providers".

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