Unlike an annuity, with income drawdown your pension fund remains invested and you simply take an income directly from it. As with an annuity, it also allows you to take a tax free lump sum of up to 25% of the total value of your pension fund.
Although it is a flexible way to take your pension benefits, it may not be suitable if you want the security of income that an annuity offers.
You can find out more about how drawdown works in these guides:
Are you over 55 and have 'defined contribution' personal or workplace pension savings? If so, you may wish to consider an annuity as an alternative or addition to drawdown.
An annuity has the benefit of ensuring a guaranteed income without exposure to the fluctuations in financial markets. If this is something you’d like to explore, Retirement Line is here to help. Our Annuity Specialists can explain your options and provide you with annuity quotes from leading providers.