A prominent pensions expert has stated that more needs to be done in educating potential annuitants about the need to exercise the open-market option. Laura Goodman who is Rockingham Retirement’s Director of Corporate Communications argued that it was important for everyone, especially women, to ensure they carry out proper retirement planning. She added that.. “…we have to make people aware that they can exercise the open market option, they can exercise their choice and choose the right annuity product for them.”
She also highlighted the danger women can face by not not saving enough for their pension funds…”...you’ve got a percentage of women that still are looking after the home and bringing up children and they are going through years of not contributing towards a pension.” This assertion is backed up by the fact that careers breaks appear to be damaging women’s pension funds as they make less of a contribution than men who do not take these breaks.
With women having on average a smaller pension fund compared with men, it is even more vital that they shop around pension annuity providers to get the best rates.