Take-up of the open market option (OMO) could be pushed forward by the introduction of the new Solvency II regulations, new European rules for insurers, says MGM Advantage.

The retirement income specialist believes that the Solvency II rules, due for implementation in 2012, could cut the level of income from annuities and force insurers to raise capital. They could therefore, MGM Advantage said, act as a catalyst for consumers to make the best use of the OMO and shop around for the best deals on annuities.

"The last thing pensioners need is to hear that their retirement income is going to be eroded further by these new European rules," commented Craig Fazzini-Jones, executive director at MGM Advantage. "But those that shop around for the best annuity rate could increase their retirement income by thousands of pounds.

"Currently many people close to retirement are unaware of the open market option. We intend to make consumers more aware of it and to ensure that pensioners avoid unnecessary hardships in retirement."

The comment follows news that MGM Advantage and three other retirement income providers have formed a new group to help raise awareness of the OMO, and help people make the most of their retirement savings.

- Pensions Age August 2009

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