Pension drawdown glossary
An insurance product that turns some or all of your pension into a guaranteed income, usually for life. Unlike drawdown, the income cannot run out, but you give up flexibility and the pot is normally no longer yours to pass on.
Source: MoneyHelper: annuities explained · Last reviewed 24 September 2026
See every term in the A–Z glossary. Definitions are general information for the 2026/27 tax year, not personal advice.
Important: The value of investments can fall as well as rise. You may get back less than you invest. Tax rules can change and benefits depend on individual circumstances. This is not financial advice.