Why do I need an annuity?
Why should I buy an annuity with my pension fund?
Annuities have received negative press in recent years, but even so they remain a good option for savers seeking a guaranteed income for their retirement. Whereas income drawdown leaves you exposed to market movements or the performance of your investments, with an annuity you know exactly how much income you will receive and for how long you will receive it. This security means an annuity could be an option for your everyday living expenses when you reach retirement.
Combining annuities with drawdown
You don’t need to use your whole pension fund to buy an annuity, which makes it possible to combine the security of an annuity with the freedom of flexi-access drawdown for your retirement income. This means you could use your annuity income to pay for bills and everyday living expenses, while using drawdown to access money for any additional expenses like a new car or a well-deserved holiday.
Find out more about flexi-access drawdown
Receive a free consultation with a financial planner
If you think you could benefit from combining an annuity with flexi-access drawdown, or if you’d just like to discuss your retirement options in general, why not get in touch with one of our qualified financial planners? Simply call us on 020 7189 2400 today or follow the link below to book a free no-obligation consultation. You can also find out more about your retirement options at Pensionwise.gov.uk.
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Download one of our free pension guides
The decision to access your pension is an important one and will affect your income and possibly your standard of living for years to come. Therefore we recommend that before any decision is made you receive regulated financial advice or get free guidance from Pension Wise. Find out more about Pension Wise.