Pension Annuities

The latest figures from the ABI showed the OMO take-up rate fell to 34 per cent in the third quarter of 2009, compared with 37.5 per cent in the same period in 2008. According to the ABI, just 0.5 per cent, or 358 out of 73,562, of retiring investors who purchased an annuity from their existing pension company managed to buy an enhanced annuity, an income increased above the standard rate in recognition of reduced life expectancy. By comparison, 24 per cent of investors, 9,124 out of 38,050, who exercised the open market option secured an enhanced annuity.