Prior to the commencement of the pensions reform changes, historically purchasing an annuity has been the most common way of turning someone’s pension savings that they’ve built up over the years into an income that will last them the rest of their life. 

After deciding what level of income is required, an individual can shop around and compare rates. This is called using the ‘open market option’. This means that someone does not have to take the pension offered to them by their provider; they can take their fund to another provider to obtain a higher rate.

Shopping around could increase someone’s retirement income considerably and provide access to a wider range of products.