Exploring your Open Market Option
By not exploring your OMO you could lose out on up to 35% extra retirement income.
What is an Open Market Option?
An Open Market Option (OMO) is your right to move your pension fund to whichever company offers you the best pension for your money. When your pension is due to be paid, your existing provider will send you an indication of the amount of pension they can offer from the funds accumulated. You have the right to see if another company can offer you improved terms. Every person who holds a personal pension is entitled to an Open Market Option.
How does it work?
If you decide to take a tax free cash sum from your pension (known as a Pension Commencement Lump Sum) your existing provider will arrange this. The balance of your funds will be transferred to the new provider who will pay your income for life.
Why explore your Open Market Option?
Your OMO gives you the right to choose how your retirement fund is utilised. You could potentially lose out on extra retirement income by not exploring your Open Market Option and simply taking the default solution offered.
Why take advice on your OMO?
If you have looked online or received any information from your current pension provider already then you may be under the impression that your only option with your OMO is to buy a standard annuity. This is because these other companies are not offering you advice.
Taking advice helps to ensure you are receiving the maximum retirement income available to you.Share