How To Compare The Best Annuity Quotes
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How To Compare The Best Annuity Quotes

 

 

As you near the age of retirement and start to consider drawing an income from your pension fund by way of an annuity, there will be one very important piece of information that comes through your door.


This will be the letter from your pension provider telling you the value of the fund you now have access to in order to create your pension income.


However also within that envelope is likely to be your quotation for the annuity that your pension company wish to provide you.


But stop!

Though your pension provider may like you to think that theirs is the annuity for you, the Open Market Option actually makes it possible for you to choose from a greater variety of pension annuities that could offer a much better rate of return.


It is estimated that over £1Billion in pension income is thrown away each year from people buying annuities but failing to shop around and compare the best quotes (Source:

http://www.napf.co.uk/PressCentre/Press_releases/0176_Savers_left_short_changed_and_bewildered_by_unfair_annuities_system.aspx).


What is the Open Market Option?


Established in 1975, the Open Market Option is the financial legislation which states that every individual pension fund holder has the opportunity to choose their pension annuity from any reputable provider.


This means there is no limitation to who you choose to take up your pension annuity with, and that your current pension scheme company cannot force you to use the annuity they provide.


How to Make the Most of the Open Market Option

To achieve the best level of income for your pension it is essential to find the annuity that is going to provide you with the most attractive overall return.


This will incorporate the level of monthly payments that the annuity will offer as well as any guarantees or enhanced benefits that are also available. However, such a product may not come from your existing pension scheme company.


In fact, the only way to ensure you have access to the complete range of pension annuities available, and to make the most of the Open Market Option, is to speak to an Independent Financial Advisor who specialises in pension annuities.


Not only will they be able to provide you with full and easy to understand information on the range of basic annuities available, they also have access to a variety of enhanced and impaired life annuities that are not accessible on the open market, but could provide you with a much better monthly income.


As annuity premiums are based on the life expectancy of the holder, an Enhanced Annuity or Impaired Life product can ensure that your annuity pays out at a much faster rate so that you can take advantage of more of your investment, while you are still around to do so.


In actual fact, more people are eligible for an enhanced annuity than they would actually have thought, but without specialist knowledge and advice, they simply end up sticking with the standard product unable to ever realise their pension fund's true potential.


So make sure that when that letter arrives on your doorstep, you use it wisely. Get advice from an Independent Financial Adviser and let them know you want to take the Open Market Option. It could pave the way to a much brighter financial future.

######Author Bio########

Steven Keogh is the founder of the UK financial advice website Think IFA which offers friendly, independent pension advice and can compare annuity quotes from every single provider in the UK by using the open market option. Visit Steven's Google+ Profile


 



 

 

 

 

 

 

 

 

 


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