The Open Market Option (OMO) allows you to ‘shop around’ for the company who will provide you with the most income in retirement, from the pension fund to which you have been contributing throughout your working career. It allows you to compare the income your current pension provider is offering with the rest of the market.
DO NOT ACCEPT THE FIRST QUOTE FROM YOUR PENSION COMPANY. This is the biggest mistake many people make when taking out their pension income. They assume that as they have been saving all their working life with a pension company, then that company will give them the best possible income at the end of the term. However, in up to 99% of cases this income is less than that which you would receive on the OPEN MARKET. You are not under any obligation to buy your annuity from your pension provider.
The FSA are keen for people to make sure they have done their homework and surveyed the market to find the best possible rate of income. This is where Retire Right come in. We will research the entire open market based on your circumstances, and will then send you a free no obligation quote.
It is important to add at this point that it is not just a matter of searching the market for the best rate based solely on your age and the size of your pension pot. If you have any mitigating circumstances, i.e. if you smoke or take any prescription medication, then these factors can affect your income. In up to 60% of cases it is found that a client is entitled to enhanced rates.
It is very IMPORTANT to remember that once you buy an annuity, then you cannot change your mind later. You have got to be certain of your annuity purchase from day one, so make sure you take suitable advice to ensure that this is done correctly. Call our experts……