A simple way to plan for your retirement
using a mix & match approach
Our interactive tool shows the income you could receive by blending secure and variable income. It helps you see how you could choose a mixture of retirement options to match your needs.
Enter your details and choose how much secure and flexible income you want to receive. The Retirement Planner then uses best buy annuity rates to give you an idea of how much of your pension might be needed to purchase the secure income. It also predicts how long your flexible income could last based on assumptions you can change.
You can adjust the amount of secure and variable income you want to find a plan that works for you.
A mix and match approach could help you find the right balance between secure and flexible income.
Annuities provide a secure income that will continue to be paid for the rest of your life. You can choose for the income to continue to your spouse or partner after you die so you know they are taken care of. However, an annuity does not provide flexibility - once set up it usually cannot be amended.
Drawdown offers a more flexible option that allows you to amend your income when needed. It also gives the potential for an increasing income depending on how your investments perform. It is a higher risk option than an annuity because your income is not guaranteed. You could run out of money if your investments perform badly, you take too much out or you live longer than expected.
Having some secure income from an annuity could provide the security you need, whilst the flexibility of drawdown could be used to cover a change in circumstances.
I'm happy I took a mix-and-match approach because it gives me the best of both worlds – secure income with my annuity and variable income with flexibility and a chance of some investment returns from drawdown.
After 23 years as a sales manager for a manufacturing company, I decided to retire to explore other opportunities available to me. I took a lot of time considering my options. In retirement I wanted to make sure I had secure income to match essential bills but still had some flexibility. That’s why I decided to use a mix of options to achieve both secure and variable income.
For the secure income I will have my state pension when I'm 66, but to top this up I decided to buy an annuity. By just providing them with a few details, Hargreaves Lansdown searched the whole market for a rate, and found one 30% higher than my previous provider was offering. This extra income is paid to me for life so it was definitely worthwhile.
The attraction of drawdown was its flexibility. I'm currently drawing enough each year to manage my tax liability. I can increase or decrease how much I take when my circumstances change. I used Hargreaves Lansdown's research to help me choose where to invest and it's really easy to monitor my account online. The income could go down but that's why I have secure income to fall back on. I can afford to take a bit more risk with drawdown as I have the safety net of my annuity and my future state pension, both paying me a guaranteed income each month.