Thanks Terpe, I was trying to put it in simple terms, not always easy to find the right words to do that, especially with something like Annuities/Pensions .

Andy222: At the moment it would affect Pension Credit, which is means tested. Any Savings/Annuities over 10k are taken into account. State Pension I don't think would be affected unless there is a means test involved - in which case, it could have an affect on any Pension that needs to be topped up.

I myself - and others in the situation of being at, or near Pension age - would be best advised to wait until April, when new regulations are due to be announced. And hopefully, with an election around the corner, we will see more much needed Benefits for Pensioners - especially the level of the Pension itself - and Pension Credit, I have read somewhere, will not in future be means tested. Which may not seem much, but again for Annuity holders, it could have a big bearing on what decisions they choose to make. As an example, in my case it will mean I can get a Guaranteed Pension/Pension Credit without being means tested, so I can take my Lump sum, and get my Pension Credit without me needing to Top up any Pension I have from MY Lump sum.

Hopefully it's simple for people to understand and here is where to get YOUR Personal Illustration:

http://www.justretirement.com/ free of charge.

A final reminder, ANYONE who is over 55 can take up to 25% Tax Free out of their Pension Pot, so if you need some of YOUR money urgently this is a way of doing it.