Following last week’s column on targeted pension strategies, in which I mentioned annuities, I thought I would cover the difference between annuities and pension drawdown.
When I was a young lad in this role, everyone took out an annuity. Today, those accessing their pension plans for the first time is closer to one in 10.
This was because of the very low interest rates we had for many years, and when pension freedoms arrived, there was no real need to have one.
