What exactly is an annuity and how important is it? Put simply, an annuity is a guaranteed income, paid to you by a company that you choose to manage your 'pension pot'. Annuities will be paid out at different rates depending on an individual's circumstances.
One way to find out a little more about them is to visit websites which encourage interaction from their visitors. These sites act as a form of community, where people leave reviews and feedback of products and services that they have used.
By visiting one or more of these websites, you will be able to discover other peoples 'real life stories' about the various options that they have chosen, and thus come to a more informed decision yourself.
Of course, it goes without saying that you should also seek the services of an independent financial advisor. It is only by putting together information from many different sources that you will arrive at a decision that best suits you.
Whatever decision you arrive at in regards to how you use your pension pot, remember to leave your thoughts and experiences on the review sites that may have helped you during the process. This way, other people could take value and learn from your experiences, and the community as a whole knows the best schemes to take out and those which should be avoided.