What is the 'Open Market Option'?

When the time comes to consider how best to access the funds that are available in your pension, your current pension provider will usually offer you a Pension Annuity. However, unless you are perfectly happy to, you are not obliged to purchase your annuity from them. You have the right to purchase an Annuity from your company of choice. This is called the “Open Market Option”. Needless to say, rates will vary between insurance companies and whilst your current provider could offer you a seemingly adequate annuity income package, it may well not be the best. Exercising your "Open Market Option" allows you to shop around and compare rates or arrangements with other providers. This can be a worth while exercising as, in some cases, the best rate being as much as 50% higher than the worst which could result in the amount that you will receive for the remainder of your life could be greatly increased.

If you belong to an 'Occupational Money Purchase Pension' (through your employment), the trustees of the scheme may, as a matter of course, organise and purchase your Pension Annuity. However, you can still exercise your 'Open Market Option' if you feel you would like to explore the market and find a more suitable option. Credencis will search the market for the very best rates that are currently available. We will need to take a few basic details from you in order perform our search.

To find out if you could qualify, please call 08456 385 047 or email info@credencis.co.uk


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