Is there a difference between annuity providers?
Annuities is a huge market and accordingly a number of different brands have sprung up over the last few years offering a range of different annuity options and plans for customers. Although most annuity providers offer very similar plans when it comes to annuities, there are differences between them which can make a financial difference to your annuity income.
Different annuity providers can be tailored to the different needs of each individual and you may find that one offers a better enhanced annuity package than the other, and vice versa. Another consideration that you need to make is the financial stability of each annuity provider. If you are going to be investing your pension fund into this provider then you want to make sure they will be able to provide a financial return for what could be the next 30 years.
How can the Open Market Option help me?
The Open Market Option was designed to promote competition within the annuity industry and encourages everyone to shop around for a different annuity provider. It means that upon choosing an annuity a person does not have to stick with their original pension provider, rather they are free to choose between a number of different options depending on their own individual needs.
Annuity providers are encouraged to offer a range of different options and plans to draw in new investors as they can no longer be assured of the continued clients from existing pension plans.
What are some benefits of considering different providers?
There are a number of reasons that you may consider different providers but one of the biggest benefits is that you have the ability to choose between a range of different options which could be tailored to your individual needs. Each provider offers a range of different plans depending on your circumstances and if you are eligible for an enhanced annuity or you suffer from poor health conditions and lifestyle habits, then you could find that by shopping around you could increase your annuity income by up to 40% over the period that your annuity is paid.