Having interest rates at historically low levels not only affects savings rates it also influences annuity rates meaning the revenue which a pension fund might produce may be lower now than it may have been a decade ago.

If you are about to retire this could be a concern as you only get one opportunity to buy an annuity and some ideas about the best way to maximize that oppportunity might therefore be welcome.

Commonly known as income draw down, a draw down pension is one option to think about. This arrangement offers the opportunity to defer purchase of an annuity and in the meantime leave your fund invested and draw revenue from it. What remains is left invested until such time either you decide the environment is correct to buy that annuity or if such a day never arrives maybe indefinitely.

The income you take can be whatever you want subject to a maximum defined by the Government's Actuary and inside those limits can be increased or reduced as your circumstance changes.

Therefore if you continue working part time you might draw just a small amount to start with then increase it as your hours reduce. Or, if you at least 55 you might take the tax free pension lump sum but leave the fund invested to provide earnings once that lump sum runs out. Naturally this option is not acceptable for everybody and there may be drawbacks. If markets fall the value of your fund could fall leaving you with less.

There are also fund charges that may instead stop with a pension and costs for carrying out reviews. Finally there is not any guarantee pension rates will improve. Nevertheless you only get one opportunity to buy an annuity so you should always ensure you check out all of your options.

Remember if you're at least 55 and are looking to take an early pension lump sum before your official retirement age you will in fact be entitled to obtain up to 25% of your complete allowance pot completely tax free though this will affect your potential earnings in retirement and also what you might do in the way of a draw down pension.