Retirement Lump Sum V Pension?

strathdene

My Husband is taking early retirement after 40 years in the NHS. He has an NHS pension so will have a lump sum and a pension. The query is should we take a larger lump sum and a smaller annual pension or a larger pension and smaller lump sum? Can anyone advise on this or advise how we can get the best advice? Thank you,

atush

Well, we could but not from the little you have told us.

We need the commutation rate (ie the amt the pension is reduced for each extra 1000 of lump sum) and details of your other finances. Because one main reason for a higher lump sum is if you have 0 other or very little savings and investments, if your mtg is paid off, your income if you are working, how many eyars until you both get your state pensions and if yours is full or reduced etc. Have you even worked out of you can live (with a little wiggle room) on the reduced pension?

Basically you need to figure out how much you need to live on until you have other income streams such as state pension, your work pension and if the reduced pension will cover this.