When you receive a quotation from your pension provider, you may wish to shop around to try and find a more attractive annuity.
This is called taking the Open Market Option. By law, you are entitled to take the value of your pension scheme and buy an annuity off another provider.
You may choose to do this because another provider offers better terms and can provide you with a larger retirement income, or another provider can satisfy your retirement needs whilst your current provider cannot.
Choosing a Pension Annuity
By shopping around, pensions experts estimate that some retirees can increase their retirement income considerably, in some cases by 50% or more. This will depend on the age and health of the pension scheme holder.
This is extremely significant because it influences the level of annuity payments received by the pension holder every month.
Once you have decided to shop around for a pension annuity, it is a good idea to make sure you know the facts of your pension scheme, including your projected retirement income.
You can then proceed to assess your pension annuity options and choose the one most suitable for you.