Using Income Drawdown – how much pension will you be paid? 2

Basically when you want to retire you could buy an annuity

But personally I am not keen on annuities because when you die (or when you and your spouse die) the fund is lost

So if you have a SIPP or similar Pension, Income Drawdown might be better but unless you have a guaranteed income of £20,000 (in which case you can do Flexible Drawdown – meaning you have a lot more freedom over how much pension you can be paid) your pension is capped based on GAD tables.

I have found an online calculator that makes it easier


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