A total of 46% of people who had paid into either a company or personal pension know about the open market option (OMO) and that they would not fall under any obligation to buy their annuity from the same company that holds their pension fund, according to research by Skandia.
A survey of more than 800 people aged 50 to 66 and approaching retirement shows less than half of people approaching retirement who have paid into a defined contribution (DC) pension do not know about annuities and income drawdown. The research follows the Government’s plans in the pre-budget report (PBR) last month to improve OMO uptake for annuities. However, Skandia says the need for advice at retirement goes beyond just looking at the OMO and should take all options into account. In the PBR the Government said it would launch a web-based tool to help people choose the most appropria...
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