Options at Retirement

You have the option to shop around and exercise the ‘Open Market Option’. In fact, the Financial Services Authority (FSA) instructs insurance companies to tell their Personal Pension clients that they are entitled to shop on the open market for their annuity.

Some people who retire don’t take up this option and are potentially losing out on a higher level of income. It is an expensive mistake to make, because once you have bought your annuity, you cannot change to another provider at a later date.

How do I know which annuity provider to choose?
Research which company has the best annuity rates. Looking in the financial pages of the national press or at the FSA website can do this. Both provide tables of the top annuity providers.

You can then obtain quotes directly from the relevant insurance companies or use the services of an Independent Financial Adviser (IFA) if you require advice. If you do not have a financial adviser you can contact IFA Promotions on 0800 0853250. This is an independent company who can provide details of IFAs in your area that deal in annuity business. You can do this online at www.unbiased.co.uk.

Note - You should ensure that you compare like with like quotations. Companies that appear the most competitive using certain options, may not be as competitive when different options are selected