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People urged to pick the best pension annuity for them

The Association of British Insurers has told pension providers to write to all their policy holders approaching retirement to tell them to compare deals before choosing an annuity.

In 2012, 400,000 people bought a pension annuity, which is the regular income people receive in retirement rather than the larger built sum saved up.

BBC Radio 5 live Wake Up To Money asked Tom McPhail, head of pensions research at Hargreaves Lansdown, what difference the right choice makes.

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