When you retire your company or personal pension will normally provide you with a tax free lump sum payment. The balance can then be used to secure an income for your retirement and there are a number of options open to you, such as an unsecured pension or phased retirement. However the most common solution is to purchase an annuity.
At is simplest; a lifetime annuity converts part of your pension into an income for the rest of your life, however long you live. The level of income you receive depends on a number of factors including:
