Open Market Option: A Matter of Awareness

In line with the best annuity rates in the market today, are you aware about the Open Market Option? You don’t have to search far and wide in order to avail of this benefit. It is actually open to anyone who’s seriously planning a retirement fund.

OMO as a right

Open Market Option or OMO is not something new. Frankly, it first started in the UK back in the 70’s. By virtue of the United Kingdom Finance Act, anyone nearing retirement was given the right to ‘shop around’ for options. Results gathered from a number of options would enable one to convert a pension into an annuity having the best possible rates. This ensured that citizens got the best possible deals their money could buy. Seen this way, it was indeed a very positive move which still works up to this day.

OMO as a campaign

The Open Market Option campaign is ongoing; in fact, it is here to stay. As part of this awareness campaign, pension providers and insurance companies are encouraged to support it, with media at the forefront of disseminating all information. Thus, this is an annuity issue wherein the entire pension industry, web industry, and media network are actively involved!

OMO as an offer

Potentially, OMO can increase your retirement income by as much as a staggering 40%! This is compared to the default rate or that which is offered by a pension provider to anyone as a standard rate.

If you miss out on OMO, then you are really missing out on the benefits of being a retiree! Come to think of it, 40% higher on anything is a big deal! It equates to lost income which could have been yours, had you known or had someone offered it to you.

Thus, it is the duty of an insurance pro to inform clients and offer this option. The impact of this offer becomes so much greater when you are already talking deals and contracts with an insurance provider. Why so? It’s because once a pension annuity has been purchased, it can no longer be changed. Binding and final, it cannot undergo any adjustments or revisions other than the arrangement originally agreed upon.

It is, indeed, sad news for retirees if they’re uninformed about their pension options. Especially if you’re one prone to ailments and illnesses, you could be entitled to Enhanced Annuity or Impaired Life Annuity simply by being aware that there’s such a thing as Open Market Option.


For information, help and independent financial advice on pension annuity call our specialist team of advisers or visit http://www.annuitysupermarket.com/open-market-option