Open Market Option

UncleZen

If I wanted to transfer a pension to another provider, the so-called open market option, where would the best place be to research my options for possible destinations?

Thanks

westv

Annuity? If so, presumably that route suits your objectives and risk profile?

greatkingrat

You probably need to be a bit more specific about what you are looking for.

What sort of pension do you have currently? Do you want to start taking money from the pension immediately or leave it invested?

UncleZen

There are 2 pots worth about 50k total.
No need to take the pension as the holder has an income. Could leave it invested, though they are both in cash funds right now. Limited options with 1 company i.e. must buy annuity or take all in cash. So was thinking of moving theme elsewhere to give me more options

kidmugsy

http://monevator.com/compare-uk-cheapest-online-brokers/

westv

UncleZen wrote: »

There are 2 pots worth about 50k total.
No need to take the pension as the holder has an income. Could leave it invested, though they are both in cash funds right now. Limited options with 1 company i.e. must buy annuity or take all in cash. So was thinking of moving theme elsewhere to give me more options

So not really anything to do with the open market option?

UncleZen

Westv,
explain to me what open market option is then, maybe Ive misunderstood.

Or maybe Ive asked the wrong question.
I'd like to transfer the current pots into 1 pot where I have the full range of options, particularly flexible access where the holder can take out lumps in an adhoc way, manageable online, which is not available with either pot where they currently are.

OldMusicGuy

I think you may have misunderstood. The "open market option" relates to buying an annuity (from what I can see, I am not an expert). It sounds like you want to transfer to a SIPP platform that gives you access to a wider range of funds for investment and also allows you to go into flexible drawdown once have reached 55.

If that is correct, research low-cost SIPPs. You can transfer existing pensions without using an IFA (I have done this) but you do need to check that the current pensions do not have guaranteed benefits that you may lose or other possible restrictions. If you can't do that yourself, you may need an IFA to help you.

UncleZen

Ah, OK, my bad for the wrong terminology.
I thought the open market options was anything related to not using the current provider.
AFAIK there are no guaranteed benefits anymore as they have already been applied.
Im also exploring taking the 20k pot in cash as long as it doesnt push the income into the 40% tax rate.