Ensuring you choose the best Open Market Option

Open market option refers to an option that people can take just before they are due to receive their private pension. Anyone who has a private pension will be offered an annuity in the last six weeks prior to retirement and your pension provider will try and get you to sign up to theirs. People should never rush into this decision and the government recommends that people who have a private pension should look at the open market option to ensure they are being offered good value for money from their existing provider or if they could get a better option by going to another provider. Most existing pension providers will not offer the best open market option and will offer their existing customers the most basic of annuities.

If people don’t look into the open market option then they will most probably up with an annuity that is not right for their circumstances. Taking an open market option can be one of the best things that people can do to improve their income on retirement. In order to find the best open market option people are advised to seek advice from an independent financial adviser as they are experts on all types of financial matters including pensions, investments, Junior ISA and savings. The various types of annuities people can consider when it comes to an open market option are a single life annuity, joint life annuity, level annuity, increasing/rising annuity, enhanced annuity, smoker, impaired life, short term, with profits, guaranteed, capital protected and open market option.

With so much choice it is easy to see why people should seek expert advice when it comes to selecting an open market option. Customers who also want to open a junior ISA can benefit from seeking advice from a financial adviser to ensure they are getting the best savings rate for their child’s money. A junior ISA is a type of savings account that is just for children who do not have a child trust fund. Parents can save up to £3,600 in any year tax free but the money cannot be accessed until the child reaches eighteen. There are many providers who now offer Junior ISA products and open market option products and financial advisors will ensure that their clients find the best products for their specific circumstances.

 

 

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