When should I buy a pension annuity?
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In short: When you need guaranteed income for essentials and want to remove longevity and investment risk — often between State Pension age and mid-70s when rates improve with age. You can buy in stages or annuitise part of the pot only.
Last reviewed:
Reviewed by Kaiser Khan
Deferring can improve quotes if health is stable; waiting carries investment risk if funds stay invested.
Many combine annuity for bills with drawdown for flexibility.
Book Pension Wise before an irreversible purchase.
Primary source: gov.uk/tax-on-your-private-pension/what-you-can-do-with-your-private-pension-pot
Part of our Pensions & retirement
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