Not all annuity providers are equal. You may think that just because your pension provider is a good place to save for retirement, it will also be a good choice for your annuity when you actually retire, but that’s not necessarily the case.
In particular, you may be able to increase your income by switching to another provider. And remember – any extra income will last for life – however long that might be. Guaranteed and at no extra risk.
The Open Market Option (OMO) involves no extra expense for you. It simply enables you to make better use of your existing pension fund.
Could you qualify for enhanced annuity? If you can answer yes to any of the following simple questions, you may qualify:
  • Do you smoke?
  • Do you now or have you ever taken prescription medication?
  • Have you ever been hospitalized for a medical condition?
You won’t even be asked to attend a medical examination. So there won’t be any undue delay in receiving your income and getting on with enjoying your retirement!
Who can exercise their right to shop for a better pension annuity? Almost anyone can shop around for the best annuity in one form or another. Exceptions are where you have a pension from a ‘final salary’ scheme of a current or former employer and some very old individual arrangements. If you have taken out one of the following types of pension arrangement in the past, you may be able to obtain a higher income at no extra cost to you:
  • Personal Pension
  • Stakeholder Pension
  • Free-standing Additional Voluntary Contribution (FSAVC)
  • Retirement Annuity Contracts, where an Open Market Option is available under the terms of the contract
  • Section 32 Buy Out Plans, where an Open Market Option is available under the terms of the contract
  • Many occupational money purchase schemes
Click here to request an appointment with an independent financial adviser from BBT Asset Management to discuss annuities and other pension related matters.

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