Martin Lewis compares pension annuity against drawdown The days when most pensioners bought an annuity at retirement to pay them a guaranteed income for life have gone for good. Today, most retirees leave their pension savings in drawdown, allowing them to carry on growing as stock markets rise. While this can bring rewards, it also has dangers. Drawdown is riskier than buying an annuity, because neither your capital nor the income it generates is guaranteed. If you make too many withdrawals too soon, or the stock market crashes at the wrong time, it could wipe out your pension pot. Earlier this year, we reported that the typical…
