When you retire, or continue to work but decide to begin drawing your pension, you have the chance to purchase an annual pension called an annuity. Call us today on 0845 458 64 83
to find out more.
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Annuities - Open Market Option
Although you can usually buy an annuity from the same company with whom you built up your pension fund, do not assume it will automatically offer you the best rate. You may do better by letting us shop around and check if another company could offer you more.
Before shopping around make sure you understand what you already have on offer.
Does the company holding your pension fund offer you a guaranteed annuity rate? (In the past, some insurance companies sold these sorts of plans. Now that annuity rates are a lot lower, these guarantees can be very valuable, but might not apply to the type of annuity you need.)
There can be a big difference between the best and the worst annuity rates. The company you choose can affect your income by hundreds of pounds a year and remember, you can’t change your mind later! You will usually be worse off in retirement than you need to be if you don't shop around for the best annuity.
What size must my funds be to consider the Open Market Option?
Whilst there is no minimum actually required to exercise your open market option, in practice there are unlikely to be any net benefits to you unless your funds are in excess of £30,000. For amounts less than this we would have to charge an additional fee for our advice, wiping out any potential gains that you might make.
Use our handy online Annuity Calculator to work out the present value of an annuity.