Annuity versus drawdown
Compare guaranteed annuity income with flexible pension drawdown, including investment risk, death benefits, tax and combining both options.
Last reviewed 4 September 2026
Frequently asked questions
Which pays more, annuity or drawdown?
There is no certain comparison: annuity rates and options are known at purchase, while drawdown outcomes depend on returns, charges and withdrawals.
Can an annuity be inherited?
Payments may continue through joint-life cover, a guarantee period or value protection if selected; otherwise a single-life annuity commonly ends on death.
Can I use only part of my pension for an annuity?
Yes. Subject to provider rules, you can annuitise part and use drawdown or other options for the rest.