Mix and match to suit you

How can I mix my options?

You can choose to buy a guaranteed income for life with some of your pension money, while also using some to provide a flexible income when you need it.

An annuity can give you a guaranteed income for life, so you’ll always know how much you have coming in. Income drawdown, however, is more flexible. You can change the amount you take out whenever you need to.

Choose what you feel comfortable with

It’s important to consider the risks and benefits of both options before deciding what’s right for you.

Different income options

Some people choose to have a guaranteed income so they know they can pay for essentials (such as bills, food and household goods). People willing to accept a higher level of risk can choose to use some of their pension money for income drawdown, to receive a flexible income that can be changed to suit their needs.

Our budget calculator can give you an idea of your regular expenditure and how much you need to cover it. Remember, you may receive a State Pension that could also help to pay the bills.

Getting advice

If you’re thinking about using both an annuity and income drawdown to provide your retirement income, it’s important to speak to a financial adviser. They can give you advice based on your individual circumstances. Please be aware that they may charge for their service.

Pension Wise has been set up by the government and offers free and impartial guidance for people retiring with defined contribution pensions. It will help you understand what your choices are and how they work.

You'll be able to get help on the Pension Wise website, over the phone or face to face.

If you are approaching retirement we recommend you get guidance or advice to help you understand your options.

Need some help?

Ask a question

There’s a lot to think about when planning your retirement. Take a look at our

Frequently Asked Questions.

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