Which? How to access your pension
May 15, 2025
Join Jenny Ross and Tom Selby, Director of Public Policy at AJ Bell, as they dive into the intricate world of pensions. They break down the differences between defined contribution and defined benefit schemes, making it easier to choose the right route for your retirement. Tom highlights the flexibility of pension drawdown and its risks, while discussing the shift from annuities since 2015. They address the crucial need for accessible financial guidance and preview the upcoming pensions dashboard, promising to revolutionize how we manage our retirement savings.
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Be Sure Before Buying Annuity
- Annuities provide certainty but are inflexible and irreversible after a 30-day cooling off period.
- Shop around and disclose health and lifestyle factors honestly to secure the best income rates.
Choose and Shop Annuity Options
- Decide if you want fixed or inflation-linked annuity payments, balancing initial income versus long-term growth.
- Shop around for best rates; rates vary and disclosing health conditions could boost your income.
Drawdown Offers Flexibility with Risks
- Pension drawdown allows flexible income by leaving money invested and withdrawing as needed.
- Drawdown carries risks of portfolio loss and running out of money if withdrawals are too high or markets fall.