Should I spend £20k of my savings on an annuity for guaranteed income in old age? Steve Webb replies

Should I spend £20k of my savings on an annuity for guaranteed income in old age? Steve Webb replies

Retirement income: Annuity will provide a guaranteed stream of cash until you die, but payments you will receive are poor after years of low interest rates Are purchased life annuities still available?

I don’t have much in the way of workplace or personal pension provision but do have £20,000 in savings and wondered if it would be possible to buy some kind of guaranteed income with it?

Steve Webb replies: The short answer is ‘yes’, you can still turn a pot of money into an income for life (an ‘annuity’) if you wish.Although the new ‘pension freedoms’ mean that people no […]

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