Those who are looking at annuities and pension funds should consider their own personal financial situation above anything else, an expert has advised.
There are advantages and disadvantages to both annuities and pensions, said Martin Bamford, from Informed Choice.
An annuity means that one knows exactly how much income one is to receive for the rest of one's life.
Mr Bamford said: "There are pros and cons to each approach and the suitability of either approach is always going to depend on your personal situation and things like how much risk you're prepared to take, how big your pension fund is, what other sources of income you've got and things like your health as well."
One needs to consider whether one wants to take out all one's money in one sum or over a period of years, Mr Bamford added.
Meanwhile, This Is Money recently reported that by the end of 2007 over 350,000 people will have exchanged their pension fund for a lifetime income.
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