Annuity

[lilypoppyfre]

now that the law no longer obliges you to take an annuity on reaching 75 is thereany benefit to getting one ?

[R1Geezer]

the main advantage is that it is an income for life. If you have a pot of money and continue with some sort of draw down stucture then it could run out. Annuty rates for 75 are as good as they are going to get so I'd say if you have a sizable pot then it's not a bad option.

[ubasses]

Unless you have a very large pension pot it probably still remains the best way of getting pension income. Even with drawdown pensions the government were going to put a cap on the amount that can be drawn each year to try and prevent people running out of retirement funds. There was meant to be a level at which the cap would be removed but it would mean that there were enough funds in the pot to prevent that happening.

[factor-fiction]

I'm not sure what else you would do with your pension pot? Leave it until after you've died? Have I misunderstood?

[factor-fiction]

Ah, having read ubasses' answer I assume you are asking is there any advantage in taking out an annuity over using draw down

[lilypoppyfre]

thank you very mich Ubasses and RIGeezer....my husband is now in the early stages of dementia and is no longer capable of dealing with his affairs.

thank you for explaining for the drawdown system.