OMO to another provider may very well result in losing the GAR. Buying an annuity with existing provider may be best option if it's an annuity you wish to purchase, provided your health is such that an enhanced annuity elsewhere is less than the GAR, otherwise may be sensible to OMO using an enhanced rate in excess of the GAR, if available.

You could also consider buying an annuity in stages or a flexible 3rd way product if you wish to retain some of your pension capital.

Policyholder protection exists to protect policyholders.

Proposed changes from April 2011 may see you being able to draw the whole fund if you satisfy ceratin conditions. These are proposed changes under FUSP.

Hope this helps. Best option would be to take proper advice from an authorised Chartered Financial Planner. That way the advice is covered by investor protection legislation which can offer you compensation if the adviser gets it wrong. DIY advice will not benefit from investor protection.

Bernard, you may wish to defer doing anything until the oputcome of the proposed new FUSP legislation. Under FUSP it may be possible to take the whole pension fund without havingto buy an annuity. First 25% will be tax free as now with the balance likely to be taxed at your income tax rate. The consultation period on FUSP closed on Friday and it is scheduled to be implemented in April 2011.

Ref security of an annuity. When UKPI went bust the industry baled out all annuityholders as per the investor legislation. That is still in force albeit the limits have altered. Unless you know something specifically about an annuity provider operating today they are all as safe as each other or as risky!

Solvency II will have an impact.