Introduced in 1975, the Open Market Option helps people about to retire to shop around and seek the best paying annuity out there. The OMO helps them put their financial matters in order for retirement; the OMO allows them to look elsewhere if the package offered by their pension providers is not satisfactory. By law pension providers cannot block this; all soon to be retired people have the legal right to find the best possible annuity payments.

Because the OMO has to be disclosed by pension providers, it is on all pension literature. Although most people ignore it, experts believe the option could earn pensioners about 20 to 30 percent and sometimes even more if you have any medical condition. With medical conditions there is a potential to get about 15-20 %.

Most people skip the OMO which is really a shame because it really offers an opportunity for better deals. Those who ignore the OMO potentially lose up to 40% annuity.

Checking out the OMO is a good idea even if it is just to see what is out there but often people who explore the option end up getting higher incomes from others than what their original pension provider can offer. A few also qualify for an Enhanced or Impaired Life Annuity which pays higher incomes to people with health issues.

Because most people are unaware of their options when it comes to their pensions, the Pension Income Choice Association (Pica) is trying to pressure the government to change the rules regarding pensions as a way of making more people aware.

Most pension quotes involve information about the value of the scheme, what investments it is linked to, the payments expected to be made and the features and benefits of the scheme. What you hear might not be to your liking but that is where the OMO comes in, you can take advantage of the option to find out what other pension providers are offering

Once you have the necessary information from your pension provider, you can use the OMO option to have a look on the market to see if there is a better offer out there. There's no harm in checking as that is why the OMO is in place, before making a final decision, it is important to know all the facts.

The OMO is every pensioner's legal right so it is the right thing to at least compare rates on the market. This is not something that pension providers encourage but do not let them intimidate you. As always make your final decision wisely as once you have bought the annuity there is no going back.

You should not be pressured into a decision so take your time to learn all the facts before deciding what you want know that you can increase you're your income by ten percent, it is even better should you have an enhanced or impaired annuity because then your income goes up meaning more money in your pocket.

Although the options and features of the Open Market Option (OMO) are very attractive, most people still ignore it which means those people miss out on considerably long term annuity income. What the OMO does is equip pensioners with the power to make the final choice. Although people purchase their annuity without having all the facts which is a bad position to be in.