Annuity income from a £250,000 pot — a quarter million at work.

£250,000 is a substantial pension pot — roughly the 75th percentile for UK adults approaching retirement. A single life level annuity at 65 might produce around £16,000-£17,500 per year, or about £1,400 per month. With the state pension, total income exceeds £27,000, well above the PLSA moderate standard and approaching the 'comfortable' benchmark. At this pot size, the tax implications of annuity income start to matter: your combined state pension and annuity income will almost certainly exceed the personal allowance (£12,570), so you'll pay income tax on the excess. An RPI-linked annuity starts lower but can be tax-efficient in early years since more of the income falls within the personal allowance initially. Consider speaking to a financial adviser about the optimal mix of annuity, drawdown, and tax-free cash at this level.