This refers to the options available to members when they retire. In the past, it was typical for members to spend 75% of their accumulated pension pot on an annuity and take 25% as a tax-free lump sum. However, new freedoms announced in the 2014 Budget have removed the compulsion to buy an annuity. It is widely predicted that annuities will be less popular and other options, like drawdown, will become more widely available.