Use The Open Market Option And Get The Best Annuity Rates
Did you know that a staggering 62% of UK annuitants do not shop around for the best annuity rates
. This means that they could be missing out on thousands of pounds worth of potential income, as they may not have secured the best annuity offer. The process of comparing annuities is known formerly as the Open Market Option (OMO) and was launched back in 2002. Under the scheme, every person with a defined contribution pension scheme is allowed to seek annuity quotes from other pension providers.
This isnt like switching supermarkets where you could save a bit on your weekly shopping. Different annuity providers may have vastly different annuity products and rates, so you can never be sure of getting the best deal unless you shop around. The tragedy for many is that this vital process of comparing annuities is missed by the majority of annuitants, who simply take the first offer given to them.
Unfortunately there is no legislation which can compel potential annuitants to compare annuity offers. Although there have been improvements to the information that retirees receive about their retirement options, it has not seen an increase in the number of people who use the OMO. Consequentially, by not using OMO the annuitant could miss out on increasing their retirement income by as much as 40%, should they qualify for an enhanced annuity. This is the most extreme example of how much income can be missed by not comparing annuities. However, it is estimated that around four in ten retirees could be eligible for this type of annuity.
So to make sure you get the best annuity rates on the market, you simply must obtain several annuity quotes and then make the decision which best suits your financial needs.