The INFORMED overview

When your pension matures you have the opportunity to buy an annuity. The annuity selected then provides for your future pension income. This is such an important financial decision that real care needs to be taken to ensure the optimum outcome.
At INFORMED we aim to live up to our name by making sure we can bring you the right annuity solution when you need it.

ANNUITIES The key pointers

  • Most pensions have an Open Market Option
  • You can select an Annuity to provide your pension from any provider
  • It is an important choice
  • Impaired Life annuity options
  • Secure the best pension and the conditions for you an your family

How an ANNUITY works the Open Market Option

As your pensions plan matures and you plan retirement you automatically have what is called an ‘open-market option’ (OMO). This means you do not have to take the pension offered to you by your pension provider. You can actually take you’re the fund you have built up built-up to another provider to get the best annuity rate for your circumstances.

Some exceptions

If you have personal pension from before 1988 then you may have a retirement annuity contract (RAC)which as no OMO option
If you belong to a money purchase occupational or an in-house AVC scheme, the scheme trustees may be responsible for buying the annuity. However you can to enquire about what steps they have taken to get you the best rate.

Taking the OMO option

Researching the OMO option is essential, even though some providers offer a guaranteed annuity rate on pension funds built up with them which could be higher than any annuity rate than any currently available, checking the options is vital check before you take your fund to a new provider.
Consider any charges if you exercise the OMO. If you retire at the original planned retirement date there should not be any but some providers make charges if you retire earlier or later.

Annuity rates

Annuity rates vary and are typically affected by a number of factors.

  • Provider – in the case of a pension annuity the OMO condition means you are free to choose
  • Life expectancy – life expectancy increases mean that annuity rates tend to fall.
  • Annuity rates at the time of purchase – dependent on interest rates generally and government gilt prices.
  • Age – the older you are when you buy the annuity, the higher the income you get.
  • Health – people in poorer health can get a higher rate because they’re not expected to live as long.

Type of annuity

The type of annuity and level of pension payment varies by the different conditions you select.
These can be to building into your annuity elements like index-linking, specific guarantees and pension levels for a surviving spouse.
INFORMED can help you choose the right annuity it is important because depending on the provider and your health we have found that you can potentially increase your income by up to 20%

Your pension fund can be used to purchase an annuity. Making the best choice is critical to your future pension income
Of course our first meeting leaves you with no obligation or cost. We look forward to helping you to become informed.

Make your first step towards getting in touch

Simply call 01628 638822 or just use the reply email.

  • ‘Informed made the whole process easy and we are enjoying our new home’