Many people about to retire in the UK will have been given information about their pension that will include details of annuities.

The annuity offered by the pension provider might not be very competitive. It is possible that an open market option could add a lot more pension income each year for the rest of the annuitant's life.

This option means a policyholder is free to buy a compulsory purchase pension annuity from any provider. This applies to a With Profits Annuity as well as a standard Annuity. Many people could receive extra income of up to 30%, possibly worth thousands of pounds every year for the rest of their lives, by taking the open market option

Deciding upon the correct form of pension income is extremely important because once bought, annuities cannot be changed to another provider nor can they be altered in any way for the rest of the annuitant's life.

There are lots of retirement options such as features that can be added to an annuity. If the individual is suffering from ill health, is a smoker or is overweight this could qualify them for an Enhanced Annuity or Impaired Life Annuity. There are also other options to consider such as temporary annuities or income drawdown.

It is important that independent financial advice is obtained when taking the open market route. The advice given is normally paid for by the annuity provider as part of their costs.  Even if an individual deals direct with the provider this charge is normally still accounted for in the annuity rate.

Call  0845 123 5590  or  01325 487192