Insurers slammed as OMO usage drops

clock •

Fewer pension savers are taking the open market option (OMO) when purchasing a retirement income product, according to the Association of British Insurers (ABI).

ABI business data released today showed just 169,000 retirees decided to turn down the annuity offered by their pension provider in 2008, down from 170,000 in 2007 and representing just 37% of all annuity contracts. This is despite the total number of annuities purchased rising by 4.4% to 452,000. Retirement income specialist, Rockingham Retirement, says the 'disappointing' data shows insurers aren't doing enough to make customers aware of the products available to them in retirement. Steve Hunt, managing director of Rockingham Retirement, says UK pensioners are losing out on more than ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Income

The problem with decumulation isn't withdrawal rates - it's platform plumbing

The problem with decumulation isn't withdrawal rates - it's platform plumbing

'It's time to think differently about sequencing risk'

Hugh Cutler
clock 08 October 2026 • 4 min read
Annuity rates reach 18-year high of 7.75% in July

Annuity rates reach 18-year high of 7.75% in July

Up from 7.66% in April

Sophia Panayi
clock 30 July 2026 • 2 min read
Enhanced annuities: Turning health realities into better retirement outcomes

Enhanced annuities: Turning health realities into better retirement outcomes

'Retirement planning is not about choosing one solution over another but finding the right balance between them'

Mike Batty
clock 20 July 2026 • 3 min read