What is an Open Market Option(OMO)?
As you reach your chosen retirement date your pension company will write to you with details of your pension fund, including details for buying a pension annuity.
The annuity offered by the pension company is unlikely to provide the highest level of income when compared to other annuity providers. By taking advantage of the Open Market Option you could secure a significant increase in your annual pension income by choosing the best pension annuity available from all providers.
Few people take up the Open Market Option as it is not well known that this option exists. Pension companies are reluctant to promote it too widely as it means that your pension fund will not stay with them. Crucially, your pension company will not make a charge if you use the open market option, it is a built in feature of your pension plan. Pension increases of around 30% can be found when using the Open Market Option and independent financial advice.
Independent Financial Advisers (IFA) can provide a valuable service as they have access to all of the pension annuity companies. The IFA will use your Open Market Option to search and secure the highest pension annuity possible for your individual circumstances, leaving you enjoying a higher level of income for life.
If your worried about the value of your open market option then you can check on the current products available, using our Online Quote System
Please contact us if you would like to discuss how your Open Market Option can benefit your pension income.
