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 of your eligibility for these 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 the reality is only around one-third of retirees actually do bother to shop around. Most are unaware of the necessity of shopping around for an annuity which is remarkable when you consider that we Brit’s are adept at shopping for other types of insurance such as car and home insurance.

How do I compare pension annuity providers?

You could use an annuities calculator which will give you an illustration of the best rates from the leading providers. Alternatively you can speak to an annuity specialist such as ourselves as we will compare the market for you, searching for the best deal and then coming back to you with the best quote. This process is not automated, we manually check to see which provider has the best deal for you. If you have had any past or present health issues we will ensure you get the maximum annuity and take these into consideration if applicable.

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 your current 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.


Annuity City is an independent marketing website that acts as an annuity introducer to a company of Independent Financial Advisors. That company is authorised and regulated by the Financial Services Authority. Annuity City do not and cannot offer any financial advice provided by, or obtained through a third party. The information contained within this site is of general interest and should not be interpreted as financial advice.