Options for your clients
After many years of saving into their pension fund(s), it is very important your clients fully consider their retirement options.
Your client's current pension provider is likely to offer an annuity, but this may not be the right product, or produce the best rate. However, everyone has the right to use the Open Market Option (OMO) which allows them to shop around to find the most appropriate retirement product to suit their own individual circumstances.
People who don’t use the OMO and settle for the default deal offered by their existing pension provider may be missing out on extra income. For example, if your client has a qualifying medical condition they could get extra income with an Enhanced Pension Annuity.
If your client is looking for even higher levels of income or more flexibility than a conventional annuity, then our Pension Income Plus Annuity, our Protected Retirement Plan, or our Flexible Transitions Account may be appropriate.
Why wouldn't my client use their OMO?
There can be many reasons why someone may not use their OMO. In some cases, people are unaware that the option exists. It may be that they have simply not read their pension maturity papers correctly or the information their provider has sent has not been understood. Other people may not be getting independent advice on the full range of options available. Make sure your clients are not amongst those people!
At LV= we believe it is time for things to change. This is why we are founder members of PICA (the Pension Income Choice Association) which is an industry-led body to promote the awareness of the OMO and to modernise the retirement income industry.
Online resources
To help your client's realise the benefits of them taking their OMO, here's a list of online resources.