Shopping around with the Open Market Option 

Choosing the right annuity is one of the most important financial decisions you can make. The right choice can make a significant difference to the money you will have available at retirement.

You do not have to buy your annuity from the company who you saved with for your pension. Everyone has the right to take their pension fund at retirement and shop around for the best annuity deal. This is known as the 'Open Market Option' and can significantly increase your retirement income for the rest of your life.

We estimate that up to 150,000 people every year miss out on their right to shop around so it is important to make the right decision before it is too late. 

What you can do

You will only get one opportunity to shop around and once you have committed to an annuity provider and started to receive an income the decision cannot usually be reversed. To help you make the right decision, we encourage you to speak to a financial adviser.

You may be eligible for a further income boost as a result of qualifying for an enhanced annuity which pays additional income to people with health and related lifestyle conditions.

The chart below illustrates the range of annuity incomes that are on offer from different providers and the impact shopping around can have on your income for the rest of your life.

In this example your income in retirement could increase by 52% if you choose to take out an annuity with Company A rather than Company E.
* with mild enhancement for health and lifestyle related conditions
** with high level enhancement for health and lifestyle related conditions