Annuities - why all the hate?

DRS1

FIREDreamer said:

Albermarle said:

FIREDreamer said:

snowlaser said:

https://www.hl.co.uk/retirement/annuities/best-buy-rates

Compare those with these from December 2021!

Yes - I certainly get why people back in 2021 were negative towards annuities!

Thanks everyone for your thoughts here.  It makes me still minded to buy an annuity - but perhaps with a smaller proportion of my fund than I had initially thought.  Also the poster who said "add up your outgoings" - yes I agree, I think the right approach will be to work out what my basic expenditure is per month on essentials, and then buy an annuity for that (plus a bit) and let drawdown cover the "fun".

I annuitised 65% of my pension in October 2023 and the rest (bar a few quid) in June 2025. Both with uncapped RPI.

It has made me a higher rate taxpayer in retirement at 61. First world problem.

Why would I take more risk when the game is won, especially given there will be inheritance tax on unused pension pots from 2027 and I can gift what I like from unused income inheritance tax free?

I have a S&S ISA not far off a million quid so that is enough investment risk for me.

For now.......

There are always cashpoints people can withdraw cash from should the government play dirty. 😉

But be warned there is this thing called CBDC which may be coming and which certain people think heralds the cashless society.