steveinnorthants
Veteran
I retired early at 55 about 18 months ago, and went down the drawdown route as it gives my family the security of the fund being part of my estate. The advice I received at the time was to disregard annuities for all the reasons stated above.
I was fortunate to have 2 reasonable pension pots, having split my career over just 2 financial services firms, spending a similar time with each. I could therefore keep one pension intact and receive the usual index linked monthly pension, and transfer the other to a drawdown fund. Fortunately the provider was giving favourable transfer multiples and, despite Covid, the fund value has far outperformed forecasts. I haven't had to draw down yet as the plan is to utilise other savings before doing so, given low interest rates.
You do need to get advice to do such a transfer, but the costs are deducted from the fund, and for me, it was certainly worth it.
I was fortunate to have 2 reasonable pension pots, having split my career over just 2 financial services firms, spending a similar time with each. I could therefore keep one pension intact and receive the usual index linked monthly pension, and transfer the other to a drawdown fund. Fortunately the provider was giving favourable transfer multiples and, despite Covid, the fund value has far outperformed forecasts. I haven't had to draw down yet as the plan is to utilise other savings before doing so, given low interest rates.
You do need to get advice to do such a transfer, but the costs are deducted from the fund, and for me, it was certainly worth it.