UK's chancellor George Osborne has announced his decision to remove the compulsion to buy an annuity as part of the annual budget.

The annuity sector received the news in shock as the chancellor announced that it will no longer be mandatory for the people in the UK to buy annuity. The shares of annuity provider fell following the news. Experts have said that the reforms will allow consumers will have wider choice at retirement.

The experts in the industry are calling for open market option (OMO) for the pensioners in the country. Under a new plan proposed by thepension minister, the retired workers in the UK might be able to switch between new pension schemes in an effort to address malpractices among insurance firms.

Annuities are designed to provide a guaranteed income for life and are important part of the retirement life. Annuities are not currently mandatory but most savers chose a plan to get income for life. It guarantees a stable income for the savers and experts have said that savers should receive free advice at retirement before they chose a plan for their savings.