How would you plan to create a 'passive income'?

bostonerimus

Right now annuities are really bad value and bond/savings bond ladders will also provide very little income for the money, but at least you aren't locking in low interest rates for life like you'd do with a annuity. If you think annuity rates will go up in 5 or 10 years time and you plan to buy, then if you want low risk while you wait you could park the money in a bond/saving ladder rather than just leaving it in the bank or putting it into the stock market.

Personally I use rental income, a DB pension that I actively sought out as part of my retirement plan, in a few years there will be state pensions, a 2 year cash buffer and a total return portfolio. I will never buy an annuity as guaranteed income is covered by the DB pension and state pensions.