Tag Archives: Option

Market Analysis

Open Market Option – To Shop for Best Annuity Rates

Leave a comment

As an investor who is looking out for various annuities, the open market option is your right to shop around so that you use it to your complete advantage. It is indeed very baffling to find that most of the insurance shoppers do not take out the necessary time to shop for a good annuity rate. By doing so, people are not only missing out on a lot of money, they also might not have secured the right annuity offer. That is the basic reason why open market option becomes very crucial. Through the open market option, every individual has the right to get annuity quotes from varied pension providers.

When you shop for your clothes or accessories, you take time to go through the entire collection. Similarly, when you are shopping for your annuities, you need to take out as much time or probably even more as your future depends solely on the kind of annuity offer you zero down on. Making a comparison across different annuity providers will also elucidate on how and where you could get the best deal.

There is a lot of disadvantage that one might be at if they do not use the open market option while shopping for their pension plans. First and foremost, their retirement income might suffer if the applicant qualifies for enhanced annuity which many of the retirees would be eligible to get. So, it is strongly recommended that in order to get the best of annuity rates that are available in the market, you have to indulge in open market option so that you get access to numerous annuity quotes so that you could make an informed decision that will help you in getting the maximum annuity returns post your retirement.

Market Analysis

Find The Best Guaranteed Annuity Rates Using The Open Market Option

1 Comment

Guaranteed annuity rates are the most popular form of annuities and can be found using the open market option. The open market option was introduced to let retirees find guaranteed annuity rates from the entire market avoiding being forced to purchase the rates from the pension company they had saved with.

There are many different types of annuity that can be purchased at retirement, but by far the most popular is the guaranteed annuity, this is because of the guarantee that the income cannot fall during the life of the retiree. Those in retirement require certainty of income and do not want to worry about watching their annuity rates. Of course because the rates on guaranteed annuities are fixed there is no scope for income increases during retirement, meaning the longer you live inflation could eat into the buying power of the income.

Just because the name guaranteed annuity sounds as though the income cannot increase does not mean you cannot have escalating income, you can purchase an option for your guaranteed annuity to increase each year either by a fixed percentage or by the retail price index, this will mean the starting income would be lower than a guaranteed annuity without the options.

There are other options you can purchase when you buy guaranteed annuity rates, one of the most important and popular options is the continuing pension for spouse or partner, this means in the event of your death the pension can continue. The pension can continue at a percentage of the pension or a the full rate, again the starting income is lower and the more you wish to be paid as a continuing pension the lower the starting income of the guaranteed annuity. Other options that can be purchased at the same time are a guaranteed payment period and value protection, which pay out a amount to protect you if you die in the early years of retirement.