Now 65, Marshall had built up a small pile of pensions from different jobs, with many years as a marine engineer in the merchant navy followed by a spell as the chief inspector at Yarrow Shipyard.

One of his pensions was with closed-life office Phoenix Life and, like the majority of retirees, Marshall expected to take his annuity with the same provider. But when it said his £27,000 fund would buy an annuity paying just £1,300 a year, his friends urged him to look for a better deal elsewhere.

"I only needed to look at the FSA website to realise that other firms offered much better terms," he said.

"The best deal was from Norwich Union and that made me over £300 a year better off straight away."

Then Marshall found out that, after a period of ill health that included angina and a battle with cancer, he could be eligible for an enhanced annuity, which would pay out more on the assumption that it would be for a shorter length of time.

"After a lot of form filling and a medical questionnaire, I got one through Norwich Union again, and ended up with an even better income."

After first being offered just under £1,300 by his own provider, Marshall now has an annual income of almost £1,780 a year from his pension, nearly £500 more than he would have been stuck with had he not shopped around.

"That's just from doing a bit of form filling and asking questions. But most people don't look for a better deal either because they don't know the option is available, or because they just don't feel confident enough."