The Treasury wants the open market option for best pension annuity rates in the UK, and has issued an ultimatum to insurers. The new coalition government has issued an ultimatum to the Association of British Insurers (ABI) over its opposition to the utilisation of the open market option, according to information from Professional Pensions. Apparently, a well placed source claimed government officials had informed the ABI, whose overall membership includes a large number of annuity providers, to provide them with compelling evidence as to why the open market option shouldn’t become the default option for pension savers at retirement.

Hargreaves Lansdown’s Tom McPhail, the current chairman of the Pension Income Choice Association (PICA), said the Treasury had actually been very receptive to the organisation’s ideas on the open market option. He commented that although clearly nothing’s set in stone, the tone of the communication he’d heard from within the ABI suggests that all the relevant government ministers and Treasury officials have bought their argument that the open market option should be made the default option. He added that he he expects the ABI to attempt to pursue the status quo if it can.

An ABI spokesman stated that the ABI and its members are committed to making the process of shopping around using the open market option for the best pension annuity rates as straightforward as possible, adding that the ABI continues to work with its’ members, government and other organisations to help consumers understand the decisions they need to make when they reach retirement about their pension savings, and to improve the customer experience when having to make those those decisions.

Did you know that many people are missing out on the best UK annuity rates via the open market option. A quite staggering two-thirds of people buying an annuity do not shop around for the best annuity rates. This means that they are likely to be missing out on thousands of pounds worth of potential retirement income, as they may not have secured the best annuity rates on offer. The process of comparing annuities using the Open Market Option (OMO) was launched back in 2002. Under the scheme, every person with a defined contribution money purchase pension scheme is allowed to seek annuity quotes from other providers.

This isn’t like switching insurance companies at the renewal of your car insurance to save a few pounds. Different annuity providers may have vastly different UK annuity rates, so you can never be sure of getting the best deal unless you shop around properly. It’s just a shame that this important process of comparing annuities is missed by the majority of retirees, who simply take the first offer given to them by their existing pension provider.

Unfortunately there is currently no legislation which can compel potential annuitants to compare annuity offers utilising the open market option. Although there have been improvements to the information retirees receive about their various retirement options, there has not been an increase in the number of people who utilise the OMO. Consequentially, by not using OMO the retiree could miss out on increasing their retirement income by as much as perhaps 30% to 40%, should they qualify for enhanced annuity rates.

We can now offer you a new annuity calculator for online annuity quotes. When you buy an annuity with your hard earned pension fund, you’re buying a guaranteed income for the rest of your life, and it’s important you get the best annuity rates for your circumstances. We can help you achieve a better deal. You could increase your retirement income by around 30%, and perhaps even more.

Click on our annuity calculator for your free annuity quote. We offer top annuity rates from leading UK annuity providers; a free service with free quotes. There’s no obligation on you, and you don’t have to pay us any fees. And we’ll offer you service and advice you can rely on. Just remember, you don’t have to take your annuity from your current pension company and you will find that there are much better deals available elsewhere. You can send us your details online, or, if you wish to talk to one of our annuity specialists, you can call us free on 0800 077 3510.

Don’t miss out on thousands of pounds of vital retirement income; check out the online annuity quotes - you could qualify for a significantly higher income if you suffer from ill health, if you smoke or drink regularly, if you’re perhaps overweight, and also if your occupation is of a more hazardous nature. Note that if you want the best deal it’s important you provide us with as much information as you can about your state of health or your lifestyle that might effect the rates you’re offered. The more you can tell us, the better the rates.

Why is this? Annuity rates are all about your life expectancy. If your circumstances suggest a lower than average life expectancy, you’ll get higher annuity quotes, because the annuity provider will anticipate paying you your income for a shorter period of time. Many people of retirement age suffer from asthma, high blood pressure, high cholesterol, or diabetes, and around 40% of people at retirement actually qualify for higher annuity rates. Might that include you? If it does, don’t miss out on vital income.

If you use our online annuity calculator to get a free, personalised annuity quote, you’ll get your annuity quote on-screen straight away to give you an idea of how much retirement income you might receive. We might be able to get you even more income than shown, substantially more if you suffer from ill health or have lifestyle issues, so don’t delay, call us today to find out exactly how much extra income you could get. For examples of the higher income you could achieve see the enhanced annuity rates page or the smoker annuity rates page.

Try using our improved annuity calculator for online annuity quotes and rates. You’ll find real time annuity quotes offered in a personalised manner, and that really should provide you with accurate figures. However, these annuity rates are standard annuity rates and are only based on your age, your gender, the size of your pension fund, and your postcode. If you suffer from ill health, smoke or drink on a regular basis, if you’re overweight, or if you have a more hazardous occupation you could get substantially more than the figure shown. The annuiy rates you’re offered will depend on your own individual set of circumstances.

Too many people are unaware at retirement that they don’t have to take what’s on offer from their existing pension company, and that they can shop around, and, using  an annuity calculator for online annuity quotes can help to find the highest retirement income. This is known as using the open market option (OMO). This can make a significant difference to your retirement income.

Buying a pension annuity for your retirement income is important as it effects the income you’ll receive for the rest of your life. Get it wrong and you could lose out on thousands of pounds of vital retirement income. Yes, we can provide you with online annuity quotes but there isn’t an annuity calculator on the market that can cater for every medical condition or lifestyle issue, so it’s always best to get an annuity quote then speak to an adviser and discuss your circumstances with him or her. That could lead to you being up to 30% better off.

The age 75 rule; what’s it all about? Does it effect UK pension annuity rates? Often asked question about pension annuities. After the recent Budget statement in June, there was a lot of noise and hype about the Chancellor having abolished the so-called ‘compulsory annuity purchase by age 75’ rule. Although, strictly speaking, this ‘rule’ already ceases to exist, the reality is that the options for flexibility about how your retirement income can be taken are limited.

The Government has now actually published its consultation paper on removing the ‘age 75 rule’ on pension annuity purchase. This paper seeks to provide retirees with greater flexibility about how income can be taken, while protecting a key pillar of pension saving, that your savings are used to provide you with a retirement income. The paper recognises that for most people buying an annuity will remain the best way to provide their income in retirement. However, the paper also allows greater flexibility about how and when retirement income can be taken, especially where a minimum income level has been achieved. Given that the effects of mortality drag start to have a significant effect on UK annuity rates from 75 onwards, it seems likely that for many the question will remain ‘when to buy an annuity’ not ‘whether to buy an annuity or not‘.