Is choosing between an annuity and drawdown still relevant?

Is choosing between an annuity and drawdown still relevant?

(Karolina Grabowska/Pexels) Pension freedoms have given more savers a menu of choice beyond annuities, enabling those with a greater appetite for risk to stay invested.

Annuities therefore tend to appeal to risk-averse retirees who, in return for a guaranteed income, are willing to forgo flexibility and the ability to manage their fund, notes Mark Ormston, director of propositions and corporate partnerships at Retirement Line.

While annuities offer a ‘sleep at night’ solution to retirement income, low rates have made the argument for choosing drawdown over an annuity strong for many years, says Faye Church, senior financial planning director at Investec Wealth […]

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