This section outlines some of the basic facts about the different types of annuity products that are currently available in the UK market.
Everyone has the right to a better Annuity During the course of their working lives people will probably have saved money into one or more pension plans. As they approach retirement there are a range of options available to use these funds to generate an income.
Clients don’t have to stay with their pension provider. Just by using the Open Market Option (OMO), you can help them improve their retirement income by up to 20%* every year for life, even if they don't qualify for an enhanced annuity. The most common way to secure a guaranteed income in retirement is with a lifetime annuity; either via a non-underwritten Conventional Annuity or an underwritten Conventional Annuity (Enhanced Annuity). You can also choose an Investment Linked Annuity, but it is important to remember that some asset backed annuities have the potential for fluctuating income.
Opportunities for financial intermediaries According to the ABI, 55% of annuitants did not exercise their Open Market Option in 2011, and every year we help thousands of financial intermediaries to secure better incomes for tens of thousands of their clients. Despite this, huge opportunities exist for financial intermediaries who are not currently involved in the retirement market.
*Based on a male aged 65, with a 45k fund, 5 years guaranteed, no escalation, no value protection, based on RH2 7RU postcode, compared to the lowest standard annuity rate offered via Avelo Exchange on 06.03.12
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