Pensioners who take the open market option (OMO) are around 50 times as likely to benefit from an enhanced annuity as those sticking with their pension provider, ABI figures have revealed.
Tom McPhail, chairman of the Pension Income Choice Association (PICA), says the figures show there are clear advantages to encouraging people to take up the OMO. ABI figures show just 0.5% of people buying an annuity from their existing provider took up an enhanced option, compared to 24% of those purchasing their annuity on the open market. Further ABI statistics show the take-up of the OMO is actually falling, down to 34% in the third quarter of 2009, compared with 37.5% in the same period of 2008. McPhail is urging the Government to take action to ensure more people are able to ...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- 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
