Open market option

This describes the freedom you have to shop around for a retirement income that suits you.

  • You can get a guaranteed regular income by using your pension savings to buy an annuity.
  • Or if you’d like a variable income at the same time as leaving some of your pension pot invested, you can do so with flexi-access drawdown.

Different providers offer different rates, so you can shop around to find the one that’s right for you – like you do for your car or home insurance. You can also ask for estimates of how much income you’ll get from any company that offers annuities or flexi-access drawdown.

Also, the Money Advice Service has an online tool to help you understand and compare annuities. You can input your own details and receive an illustration of what amount you might receive as an annuity.

More about how you can take your pension savings »