I used Hargreaves Lansdown annuity web site for quotes. For flat rate life annuity that also paid 100% to my wife if I died, the best rate was 6.1% (I am 62, my wife 61). I have not made a decision on whether to do anything and might just leave my SIPP as is which I am drawing down currently at 6%. The overall value of my SIPP has fallen over the last few years primarily due to the capital hit on income generating investments such as infrastructure and renewable investment trusts. For me, other than my wife, inheritance is a non issue, once we have both died, not worried that there is no capital to pass onto anyone. The question for me is do I want a guaranteed 6% for the rest of my and my wife’s life, or stick with my current 6% SIPP drawdown with the uncertainty on whether this runs out or if some of my investments recover or dividends increase over time meaning I can increase the drawdown to perhaps keep up with inflation. I would no doubt come at this differently if I was wanting to pass on the value of my SIPP so I do get some of the other comments.

6.1% guaranteed is not a bad return, but as someone said, when you get to your early 80s you may not be in a position to spend what income you have, so you put it in the bank or give it away? You won’t be able to control the amount of tax you will pay on annuity and how much will inflation impact and erode the value of static income.

My portfolio of global tracker funds over 5 and 10 years has an average annual return of 12%. You just need to have enough money in cash or MMFs to ride out any downturn in the markets to ensure you are not having to take income form falling values.

Good luck whatever you decide to do