Latest statistics show that two thirds of people buying annuities, buy an annuity without fully using or exploring the Open Market Option (or OMO)*. Based on ABI figures, this means that 288,000** people have potentially missed out a better pension deal by not taking the Open Market Option, this is enough people to fill Wembley stadium more than 3 times!!!!!

 

Also, whether or not the open market option was used, 93% of people bought an annuity***. This meant that this 93% immediately removed their ability to react to their changing circumstances and income needs throughout retirement.

 

I believe that OMO should stand for Offering More Options. There is a great need for consumer awareness of all of the options which are available to them at retirement. Annuities are just one of several available retirement income provisions. Would your circumstances suit an alternative pension arrangement such as a drawdown plan, with-profits annuity, living time annuity, enhanced annuity, guaranteed retirement income plan to name but a few.

 

For impartial truly independent financial advice give me a call today.

 

* Source. ABI research paper No.8 2008.

** Source. ABI 2007 – 432,602 annuities purchased in 2007

*** Source. ABI 2007