Cash versus Pension

Sunset_3

The posts I've read on here always seem to suggest taking the maximum cash sum you're allowed when deciding on amount of pension v lump sum. I took voluntary redundancy but had only been with the company a couple of years so we're talking small amounts here so is the best bet generally to still take the max lump sum (about 3k) or go for the max pension. I'm female and 52 so hopefully should be able to draw it for a good length of time! It's also a public sector type inflation linked pension albeit tiny. I've used up ISA's for this year and (due to parents death) will do for a good few years to come and have found another job so don't need the cash to live on.

Any thoughts gratefully received!

ReportInvestor

Hi Sunset,

I don't know if you've got dependants, relatives, friends or a charity you would like to benefit on your death.

But one reason most people take the maximum lump sum is so that they can access their own money or bequeath it, rather than give it up to an insurance company.

The insurers obviously take your sex into account when setting annuity rates and therefore pay you less than a man .

Keep saving into the ISAs, though .