Pension Annuity

Everyone wants the most comfortable and financially secure retirement possible which is why getting the best pension annuity is vital. Pension annuities can seem complex but with the right advice you can ensure you get the best deal with the highest income possible.

Why do I need to shop around for the best annuity?

Shopping for the best pension annuity is important because the rates offered between the various providers can vary hugely. For example not all providers offer enhanced pension annuities which pay up to 40% more than standard annuities. What’s more they may not even bother to inform you, that you are eligible for there higher annuity rates. You would think with the chance of a higher income that most people would always shop around for the best deal but did you know that only around one-third of retirees actually do shop around. This is principally because they did not realise that shopping around is vital in order to get the best deal. We Brit’s are adept at shopping for other types of insurance such as car and home insurance but fail to shop around for the most important insurance – annuities.

Once an annuity has been bought it cannot be switched, so you get one chance only to get the best deal.

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How do I compare pension annuity providers?

You could use a pension annuity annuities calculator or you can speak to an IFA or annuity specialist such as ourselves. We will compare the market for you, searching for the best deal and then come back to you with the best quote. This process is not automated, we manually see which provider has the best deal. If you have had any past or present health issues we will ensure you get the maximum annuity and take these into consideration.

Explain the Open Market Option

Since 1975 UK retirees have had the legal right to choose who they buy their pension from, and this does not have to be you urrent provider. Comparing rates and shopping around is known as using the Open Market Option or OMO for short.

Although it might seem easier, quicker and more convenient to get your annuity from your incumbent pension provider, in reality this could cost you thousands of pounds in missed income. Shopping around only takes a short while and the result could be a substantially higher retirement income.

Open Market Option