4 useful insights from a decade of Pension Freedoms

A decade ago, the introduction of Pension Freedoms shook up retirement planning and gave retirees more options than ever.

Before 2015, if you had a defined contribution (DC) pension, the common route was to use the money accumulated to purchase an annuity. The annuity would then provide you with a regular income, usually for the rest of your life.

While an annuity can be valuable in some circumstances, it isn’t flexible.

To give retirees more choice, Pension Freedoms were introduced in 2015. If you choose, you can still purchase an annuity, but you might also opt to withdraw lump sums from your pension or take a flexible income that you’re in control of.

You may also mix the options. For instance, you may take an initial lump sum to kickstart retirement, purchase an annuity to create a base income, and withdraw a flexible income when you