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Annuities
Ace_rewire
Posts: 3 Newbie
Why is it possible to cash in a pension and not an annuity, can someone explain please
0
Comments
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Because an annuity is a guarantee to make payments for a specified term (usally for life) whereas a pension (a pension fund / scheme) is a savings vehicle which may be used to purchase an annuity if you wish.
Eventually you generally convert the capital sum of the pension savings into an annuity (regular guaranteed payments), drawdown (payments but you take the risk of running out of money) or cash (emptying the fund).0
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