Open Market Option

Your retirement fund will have to last a long time. Why accept the annuity rate that your existing company is offering? Almost certainly better rates are available by using your Open Market Option - and it costs nothing to find out! 

What's more, there are no extra or hidden charges for you to pay to receive this higher income as we are paid from the charges deducted by the annuity provider irrespective of whether or not you have taken advice. 

For example:

• Does the company holding your pension fund offer you a guaranteed annuity rate? These guarantees can be very valuable, but might not apply to the type of annuity you need.

• Does your fund need to be a specific size to qualify for the better rates offered by another company?

• Do you have a medical condition that could mean you qualify for enhanced benefits?

If you have more than one pension fund then think about combining them when you are shopping around to buy an annuity as larger funds often attract better rates.

March 2009 - June 2010

Monthly gross payments for a male, 65, non-smoker, single life annuity, 10 year guarantee. Purchase price £120,000

It is estimated that only 40% of those eligible to shop around for their annuity actually take the time to do so.

When you consider that you could be up to 40% better of by doing so using your open market option (especially if you qualify for an enhanced annuity then shouldn't you be investigating the alternatives too?

For a man of 65, retiring with a net fund of £50,000, the difference over his lifetime (assuming normal life expectancy) could be £15,300! All you have to do to find out if you could be better off is to contact us!

You may be interested in the article by Tony Hazell, independent financial journalist, in respect of the apathy towards open market options.