Money Lesson Single

Annuity or drawdown?

At retirement you can hand your pension pot to an insurer for an income that never stops, or keep it invested and take what you need.

One of those plans is still paying you at ninety after a bad decade in the markets, and the other is the one that keeps the balance.

ISA Investments Savings Account Property Expenses

Buy the guaranteed income

3 Goals · 1 What-If

Convert the whole pension pot into a lifetime annuity at sixty-six, and never think about markets again.

Try this plan

ISA Investments Savings Account Property Expenses

Keep it invested and draw

3 Goals · 1 What-If

Leave the pot invested and take the same income out of it each year, keeping the flexibility and the balance.

Try this plan

Buy the guaranteed income Keep it invested and draw

The guaranteed income is still arriving long after the invested pot has stopped keeping up.