Pension drawdown glossary
The risk that rising prices reduce what your money can buy. A level income or cash savings lose buying power over time, which matters over a retirement that can last 30 years or more.
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.