What is an annuity?
If you are looking for a secure, guaranteed income in retirement, then an annuity could work for you. An annuity is an income product purchased using your pension savings, like an insurance plan it guarantees a regular income payment. The income you receive is dependent on the annuity rate offered by the provider and will be guaranteed for life or over a fixed-term depending on the option you choose.
As with all income products, you can purchase an annuity from 55 years old and take up to 25% of your funds as a tax-free lump sum.