Open market option

The open market option (OMO) refers to the provision of defined contribution schemes allowing members to transfer funds at retirement and purchase an annuity from an alternative provider.

This means the person who wants to buy a pension is not tied into choosing from a limited range of options. However, many people fail to take advantage of the open market option and lose out on potentially higher returns as a result.

OMO’s are available from private pension providers and can provide opportunities to open up an individual’s retirement savings to the best current provider of an annuity.

	Annuities could be halved if pensioners ignore open market option Older people could be losing out on retirement income because of a lack of knowledge when it comes to certain terminology.
	Big energy firms must "open up market" or face penalties uSwitch has backed Ofgem’s proposals that the energy market needs to be opened up to wider competition.
	Ofgem unveils reforms to open up electricity market Energy watchdog Ofgem has outlined reforms aimed at boosting competition in the electricity market and loosening the grip of the ‘big six’ suppliers.
	Morrisons to open 300 convenience stores and online service Morrisons is to open 300 new convenience stores and roll out its new online shopping service in partnership with Ocado later this year.
	Yorkshire BS encourage borrowers to use offset mortgage option The Yorkshire Building Society is encouraging borrowers to take out an offset mortgage and use their savings to help pay down their mortgage.