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The Retirement Newsletter: Annuity vs. drawdown — what is the best way to use my retirement savings?
Welcome
Welcome to issue -27, where I will look at annuities and drawdown and ask — what is the best way to use my retirement savings?
Money — Annuity vs. Drawdown
OK, I want to say that I am not a financial advisor. I am writing about what I have read over the years about money and preparing to retire. This is not financial advice.
I never thought I would be writing about annuities or drawdowns as a few years ago, when I looked at annuities, I convinced myself that they were not for me. That is, I would take the drawdown approach to use my savings in retirement.
Why? Well, at the time, a drawdown approach seemed to be the better option. But now?
So, what am I talking about? What are annuities? What is drawdown?
With your pension, you may have savings in the bank and investments outside your pension scheme. But you may also have extra savings in your pension scheme and receive a lump sum when you retire.
