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Absolutely. Any other pension, particularly the state pension, provides that important guaranteed lifetime income (assuming the government does not renege on these). In later old age they might be adequate in themselves to support someone.

Absolutely agree that drawdown was introduced as a means of providing income, but it’s not guaranteed lifetime income. The drawdown pot will either be inadequate and run out, or will be more than adequate and be inherited (under current legislation).

A tricky sum, with numerous variables such as life expectancy, future inflation, future pension increases, future investment returns, future tax rates, future inheritance tax laws, risk of insolvency of pension schemes and insurance companies, etc.

No! There is only a requirement to obtain financial advice if you are considering transferring from a final salary scheme to a money purchase scheme and the transfer value is greater than £30,000. Even then, you are not obliged to follow the advice and can go against it. In relation to giving...

Virtually all pensions from final salary schemes are increased annually, by law. The amount of lump sum that is offered in exchange for that pension has to reflect these increases, again by law.

Cashing out part of a final salary pension and then buying an annuity with the cash gets you back to where you started, but almost certainly on a lower monthly pension. Buying an annuity with a money purchase pot is a different matter. Current annuity rates are as bad as they have ever been...

Everyone’s situation is different and there are numerous factors to consider. The rate of exchange between cash and pension is set to be fair, based on average life expectancy. People generally tend to underestimate their life expectancy. The average life expectancy in the UK for males...