Retirement Income Options with a £150k Pension Pot - Annuity, Drawdown or BOTH?

Whether you're nearing retirement or just starting to plan, it is important to understand how to use your pension pot wisely to maximise your pension income in retirement.

In this video, Damien explores level and RPI-linked annuities, as well as a combined approach that incorporates flexi-access drawdown. Damien also covers some important considerations, such as managing investment risk, passing on wealth, and working with a financial advisor.

He explains:

🔹 How annuities work and the benefits of a guaranteed income for life
🔹 The pros and cons of inflation-linked annuities vs. level annuities
🔹 The flexibility and investment potential of using flexi-access pension drawdown
🔹 A unique "phased" approach that combines annuities and drawdown


00:00 - What retirement income will a £150K pension pot provide?
00:15 - What is an annuity and how does it work?
00:43 - What is flexi-access pension drawdown?
01:00 - Why are annuities so popular?
01:25 - Annuity rates 2022 vs 2025
02:10 - Should you take an annuity or use flexi-access pension drawdown?
02:20 - £150k level annuity for a 65 year old
03:59 - £150k RPI-linked annuity for a 65 year old
05:10 - £150k phased annuitisation with drawdown for a 65 year old
07:02 - Annuity vs Drawdown compared
07:18 - Other types of annuities and retirement income strategies

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Resources:

Links referred to in the podcast:


Annuity calculator - https://www.moneyhelper.org.uk/en/pen...

How to find a good financial advice that you can trust - https://moneytothemasses.com/saving-f...

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Since 2010 Money to the Masses has been helping people with their personal finances for FREE. Money to the Masses is one of the UK’s leading independent personal finance websites specialising in all aspects of financial planning including investments, pensions, property, insurance, mortgages, budgeting and saving. We bring together expertly written content, interactive tools and technology to help over 4 million people a year across our platform.

If you are looking to get your finances in shape then check out Damien's FREE Money MOT at https://mot.moneytothemasses.com/

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