Using The Open Market Option To Get Better Annuity Rates

When you reach retirement age you will have probably accumulated a pension pot either through your own means or through a PAYE scheme that your employer has also contributed to. This pot of money, along with any other money that you want to contribute towards it, will then be used to buy an annuity.

 

An annuity then pays for your income usually on a monthly basis for the rest of your life, so that you can stop working. It is vital therefore that you search for the best annuity rates so that your annuity provides well enough for you as you retire.

 

Searching for the best annuity rates and shopping around is known as the open market option. It basically means that you can search of the whole market and are not obliged to take the first quote you are offered, usually by your current pension provider. Many people think it is just easier to accept the first one they are offered but research shows that in order to get the best deal you should shop around as this can make you an extra 30% on the money you have accumulated.

 

The best way to use the open market option is to go online and use an annuity rates calculator, which will ask you for various details such as your age, pension details, and location. It will then provide you with a list of annuity rates results and you can then go through to each one and decide which one looks the most attractive to you. You can also use annuity rates comparison sites to compare rates from different providers. This option is free and easy and can be done in the comfort of your own home. This is often a popular choice as you can make informed decisions without feeling pressurised.

 

You can also call around a few companies and speak to people personally, an option which is also popular. Often by speaking to a representative you can try and negotiate a  better deal and you can also get a feel for the company and customer services as you do this.