A pension annuity is used to convert capital within a pension plan into a regular guaranteed lifetime income.
Instead, an option, called income drawdown, lets you take an income directly from your personal pension plan.
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Money placed in a properly structured pension plan is tax deductible and the funds grow tax-free for retirement.
For example, if you've been a stay-at-home mom for the majority of your marriage, you may want alimony or a portion of your husband's pension plan.
