Blue River Annuities

UK Retirees Failing to take Advantage of the Open Market Option

Latest figures from the Association of British Insurers (ABI) have revealed that fewer people are taking up the Open Market Option when purchasing their annuity policy.  The Open Market Option is available to all retirees and means that they are not obliged to purchase their annuity from the same company that holds their pension fund.  Instead people are free to shop around for the best annuity rates offered by the various UK annuity providers.

Despite the benefits of the Open Market Option only 34% of retirees took up the option in the third quarter of 2009.  This is a fall from 37.5% of retirees taking up the option in the same period of 2008.  These figures highlight the need for retirees to seek independent advice and consider all their options before they commit to purchasing their pension annuity.  Annuity rates can vary significantly between providers and so people not taking advantage of the Open Market Option may find that their wealth in retirement is reduced.