Annuity or drawdown: turning a pot into income
5 chapters·17 min·action plan·mastery check
Chapter 1 of 5
The idea
One choice gives certainty, the other gives flexibility. Many people use both.
The two options
An annuity swaps some or all of your pot for a guaranteed income for life. Drawdown keeps the pot invested and you take what you need — flexible, but it can run out. A common approach: buy enough guaranteed income to cover essentials, and draw down the rest.
Predict first
An annuity turns a pot into…
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