The open market option is an invaluable option open to you when you retire from a money purchase pension. (A money purchase pension is essentially with no defined benefits.)
In the run up to your retirement your pension provider will offer you an income in return for the value of the pension pot that you have saved with them. (This income is known as an annuity.)
The open market option allows you to shop around and find the highest level of income available to you on the pen market. Essentially, this means you do not need to accept your existing provider’s annuity offer.
People who don’t take the open market option are missing out on exploring if they can increase their income in retirement. Once an annuity (your pension income) is in payment it is not possible to change provider. So there are no second chances. It is important that you take independent financial advice before making any financial decisions – especially decisions involving annuities.
Why not contact one of our expert independent financial advisers today for a no obligation chat and discuss your pension and annuity options.
As whole of market independent financial advisers (IFAs) we are not tied to the products of any pension or annuity provider and are therefore able to find the best possible deal for you in the whole marketplace.
Our Scottish base in Glasgow is no barrier to giving whole of market independent financial advice across the UK.