Open Market Option – Pensionfinder
When they decide to retire, members of a money purchase scheme use their accumulated pension pot to buy an annuity. They can either do this through their existing provider or on the open market. If the member decides to use the open market option they can then shop around to find the best annuity rate for their chosen requirements. Some companies may charge a member if they decide to buy their annuity from another provider, or may offer enhancement if they stay.