Pros and cons of pension drawdown include:   It’s flexible - you can take more when you need it and less when you don’t You can manage your withdrawals tax-efficiently You may be able to defer paying Lifetime Allowance tax until you are 75 You can pass any left-over money onto beneficiaries free of Inheritance tax As long as it’s regulated by the FCA, it’s protected by the Financial Services Compensation Scheme You can convert it to an annuity at any point in the future if you decide to. However, you need to manage your money carefully to make sure you don’t run out Once it’s gone, it’s gone. It’s not guaranteed for life like an annuity or Defined Benefit Pension Pros and cons of annuity include:    It’s a guaranteed income for life: it will continue to pay out, even if you live to 120 As long as it’s regulated by the FCA, it’s protected by the Financial Services Compensation Scheme. It can be adjusted for inflation (although not all annuity policies offer this) If you have life-limiting health issues it is possible to be offered a higher income due to your lowered life expectancy An annuity generally dies with you, and cannot be passed on to loved ones if you die young (although there are exceptions to this, they are rare and expensive). It offers a fixed income every month, so you can’t manage your income for tax-purposes or defer your Lifetime Allowance tax payment