Data from The Pensions Regulator (TPR) shows 97% of surveyed DC schemes provide support to members wishing to exercise their open market option.
According to the regulator's Scheme Governance Survey the number of schemes offering no support reduced from 15% in 2011 to 3% in 2013.
There was a large increase in the number of schemes appointing an annuity broker to search the market. Over half (52%) of schemes offered this in 2013 compared to 39% in 2012.
In addition 93% encouraged scheme members to take independent advice up from 86% in 2012.
Overall 21% of schemes surveyed said all of their members used the open market option. A further 13% said between 81-99% did so. Only 26% said less than 20% of their members exercised the open market option.
Hargreaves Lansdown's pensions investment manager Laith Khalaf welcomed the increase but said more needs to be done.
"We should have 100% of DC schemes providing some support to members on exercising their open market option as it's a simple step that can really improve retirement incomes," he said. "It doesn't even need to cost the employer anything to provide so more does need to be done."
However he also highlighted members may not necessarily get a higher rate on the open market option especially if members are part of the 30% of schemes that said their scheme included guaranteed annuity rates.
"If you do have one they are probably very valuable so you may not get a better rate," he said. "However, members might find these guarantees are quite limited in that they only apply to single lives for instance or you may still get a higher rate from an enhanced annuity."
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