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Old 05-09-2020, 17:57   #1
Arthur Fowler
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[Pension] Annuity vs Income Drawdown

I'm 55 and planning on retiring at 60. Much of my pension is in Defined Contribution pots but have a couple of Defined Benefit schemes too.

Thankfully and surprisingly, the DC pots have not suffered as a result of Covid.

Mrs F has a couple of DB schemes including a reasonable NHS one (although she has never been a high earner so not a huge amount of pension).

I've been looking into whether to get an annuity or go for income drawdown at retirement (or a mix of both). Seems to be a bit of a minefield! Annuity is safe, but the rates are dreadful and look to have gone down quite a lot in the last 6 months).

Although I'm a few years off yet, I need to make a decision about annuity versus income drawdown as this affects where the money gets moved to in the coming years in preparation for retirement.

Has anyone else been through this process? Any nuggets of information from experience?
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Old 05-09-2020, 19:35   #2
jockosjungle
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Is your wife well cared for? What is your defined one if, sadly, you die and what would your wife get? Not wanting figures, more rhetorical questions but my pension is fine if I live forever, but not so great for the spouse part.
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Old 05-09-2020, 20:01   #3
Arthur Fowler
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Quote:
Originally Posted by jockosjungle View Post
Is your wife well cared for? What is your defined one if, sadly, you die and what would your wife get? Not wanting figures, more rhetorical questions but my pension is fine if I live forever, but not so great for the spouse part.
Good question. The annuity rate I've been looking at includes 50% widow pension.

The DB pensions which look like they would give me around 50% of the annuity income also have 50% widow pension.
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