In the US, when you retire, can you do what you like with your pension funds or do you have to buy an annuity?

In the UK, because the government subsidises our contributions, we have to gift 75% of the fund to the crooks running the annuity racket, with their telephone number salaries and even higher annual bonuses.

The alternatively secured pension(ASP) to which Joe refers, is only available to Plymouth Brethren and it merely replaces the 75% annuity expenditure by a 52.5% inheritance tax. But at least this goes to the govt and not to the insurance co.

depends on the type of retirement plan. with a defined contribution plan like a 401(k), when you retire you can do a rollover to an IRA. Essentially that money is all yours, but if you take it out of the account you must pay tax on it.

Another type is a defined benefit plan, where the employer guarantees a certain payout after you retire. These plans either pay an annuity or a lump sum payment. Often it is the employee's choice which of these payment plans they want. However, some pension plans you can only do it their way...meaning you have no choice. You must get the money the way they say.

The other thing that hardly deserves a mention is Social Security. I will probably never see that money since I'm 25 ,and the system is completely screwed (even though I will have involutarily paid into it for my whole working life). But you can elect to receive benefits at age 62 or 65. The earlier you begin to receive those checks, the lower the monthly payment you will receive.

YOu can do what you want in the US. No annuity's You can do what YOU want.

the social security portion of retirement is just paid to us monthly with annual cost of living increases - but it is taxable income

We do not have to buy an annuity with IRA's and 401k's. Social Security is a mandatory government-sponsored annuity program. I am not an expert on the United Kingdom, but this site suggests there are alternatives to annuities in the U.K., with what is called an unsecured pension.

You can do whatever you want with whatever money you happen to have at retirement. Hopefully one will use it wisely and have enough to survive until death.

Of course, it seems to me that in the UK you have free money for everybody at every age. Seems like a trade-off. Lots of people on the dole and getting subsidies and all that rot.