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.
	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.
	Clydesdale Bank launch interest-only mortgage option Bucking the trend of other lenders the Clydesdale bank has launched an interest-only mortgage that revers to a repayment mortgage after three years.
	Barclays Springboard offers FTB's 5% mortgage option Barclays has launched a new product that offers a mortgage to first-time buyers with just a 5% deposit but their family has to invest 10% of the purchase price into a savings account.
	Property market 'a safe savings option' Many investors will see the property market as an alternative place to put savings funds during a period of historically low interest rates, it is claimed.