Don't allow your savings to roll into the default annuity option offered by your pension provider as you will get a better deal elsewhere.

If you go for the annuity option, remember that rates are relatively low at the moment because of long-term low interest rates and gilt yields, as well as increasing longevity.

Moreover, many less financially sophisticated people with smaller pension pots prefer the annuity option because they feel overwhelmed at the prospect of managing their fund to produce an income.

He says that people with private pensions should discuss their annuity options with an independent financial adviser, comparing products from a number of providers.

We also look at your annuity options.