Blended and hybrid pension options
For most people with defined contribution pensions, there are two main options to choose from when it comes to taking their retirement income:
- Buying an annuity – using your pension funds to buy a guaranteed income either for life, or for a fixed period
- Taking an income via drawdown – leaving your pension invested and taking money flexibly as and when you need it.
What many people don’t realise is that they may be able to mix and match these options to better suit their financial circumstances and goals for retirement.