Drawdown or Annuity?

You've spent a lifetime building your pension. So how do you turn it into an income that lasts as long as you do? Let's take two minutes.

First, a quick note. This is general information, not financial advice.

Meet Gail. After forty years of work, she's retiring, with a pension pot she's proud of.

But a full pot isn't a monthly income. Gail has to turn it into money to live on.

One way is drawdown. Her pot stays invested, and she takes money out as she needs it.

The other is an annuity. She swaps part of her pot for a guaranteed income for life.

Flexibility, or certainty. And lately, more people want certainty. In one year, annuity sales jumped almost forty percent.

Here's the good news. It doesn't have to be one or the other.

Many people put part of their pot into a guaranteed income, and keep the rest flexible.

Start with the essentials, the bills that arrive every month.

A guaranteed income covers those, so the basics are always paid, whatever markets do.

Then keep the rest flexible, for the holidays, the treats, the unexpected.

For Gail, that's a steady income for the essentials, and freedom to enjoy the rest.

But neither route is risk free. Draw down too fast, or if markets fall, and a pot can run low.

A basic annuity is fixed. It won't rise with the cost of living.

And once you buy an annuity, that choice is usually for good.

The mix depends on your health, your income, and how much certainty helps you sleep at night.

So before you turn your pension into income, get in touch. Let's build a plan that lasts as long as you do.