Open Market Option

Rather than just accepting the annuity offered to you by your pension provider, the Open Market Option lets you shop around for the best annuity you can find. Many retirees have been unaware of their right to take the Open Market Option and have therefore arranged an annuity with their provider, when they could have secured a more favourable deal elsewhere. If you are considering using your pension to buy an annuity in retirement, taking the Open Market Option is generally the best course of action.  

See also: Enhanced annuity, Income drawdown, Capped drawdown, Flexible income drawdown, Hybrid pension schemes, Annuity

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