Pension option makes resurgence to offer Britons thousands

For this reason, annuities are likely to be most suited for those who need a guaranteed and stable income, one of the key advantages of this option.

With an annuity, a person’s retirement lifestyle will not depend on good performance in the stock markets.

However, while the option remains attractive, Ms Barrett also said it must be carefully considered, as there are some drawbacks.

She continued: “On the flipside, once you’ve bought an annuity, you can’t change your mind – the terms you choose at outset are locked in for life.