With this option you can normally take up to 25% of your pension pot or of the amount you allocate for drawdown as a tax-free lump sum, then re-invest the rest into funds designed to provide you with a regular taxable income.
You set the income you want, though this might be adjusted periodically depending on the performance of your investments.
Unlike with a lifetime annuity your income isn’t guaranteed for life – so you need to manage your investments carefully.