Open Market Option
When you start to take your pension there is no requirement which stipulates that you should stick to the pension plan provider with whom you have been saving. Indeed it may well be in your interests not to do so.
Put another way, you may save through a personal pension for many years but when you reach retirement you can shop around for the best annuity rate.
All personal pension plans include an Open Market Option. This is a 'get-out' clause which gives you the right to transfer your pension funds to a different plan provider. To put it another way, it means you can and should shop around for the best annuity deal for your money - remember it is your money!
Under current rules pensions can only be paid by an insurance company or a friendly society - if your savings have been with a unit trust, building society, or bank (rather than their insurance subsidiaries) you will be required to switch plan provider when you retire.