Open Market Option
The Open Market Option allows you to shop around and transfer your pension fund to another insurer to get better annuity rates. You don’t have to take your annuity from your pension company.
Retirement income
Around 40% of people at retirement are eligible for a higher retirement income, and can take advantage of them if they use the Open Market Option and move their pension fund. This is known as ‘shopping around’.
Unfortunately, many people simply don’t bother to use their Open Market Option, potentially missing out on thousands of pounds of vital retirement income.
Why shop around for a better pension income
There are two very important points to consider when setting up an annuity:
- You rarely have to stay with your existing pension provider when you retire and often they will not offer you the best retirement income.
- Different annuity providers offer different annuity rates. The difference between the best and worst retirement incomes can be significant.
Use your Open Market Option early
As you approach retirement your existing pension provider will advise you of the value of your pension pot, and give you some general information about annuities and the retirement income you would receive from them. This process is explained in detail on the annuity process page.
When you have this information, it is best to start researching the annuity rates you might receive elsewhere at the earliest opportunity, to give yourself time to find the best deal available. You do this using your Open Market Option. Allowing yourself three to four months to do this would be prudent. After all, you know when you’re going to retire.
To obtain your free, no obligation annuity quotes you can enquire online, or call us free on 0800 0124 374. One quick free phone call from you can make all the difference. We’re here Monday to Friday, 9 am to 6 pm.
