AEGON welcomes government's OMO proposals

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AEGON welcomes government's OMO proposals

Fri 28th Nov 2008

AEGON has welcomed the government's recommendations on the Open Market Option (OMO) for annuities, saying it could benefit pensioners.

The retirement solutions provider said that the Treasury's aim of encouraging annuitants to shop around for the best deals is laudable.

Research published research by the Treasury revealed that 60 per cent of those claiming an annuity were not exercising their right to the OMO.

Rachel Vahey, head of pensions development at AEGON, said encouraging awareness of the OMO is important because it's key that pensioners choose not just the best annuity by rate, but also the best annuity for their individual circumstances.

However, she added: "It's important to remember that increased OMO awareness won't lead to a proportionate increase in OMO take up as not everyone will be better off shopping around."

Earlier today Just Retirement, another retirement solutions provider, also came out in favour of the government's recommendations.

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